Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NORDIC AMERICAN TANKERS Ltd | |
Entity Central Index Key | 1000177 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $0 | |
Entity Common Stock, Shares Outstanding | 89,182,001 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Document Type | 20-F | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Voyage Revenues | $351,049 | $243,657 | $130,682 |
Voyage Expenses | -199,430 | -173,410 | -38,670 |
Voyage Operating Expenses - Excluding Depreciation Expense Presented Below | -62,500 | -64,924 | -63,965 |
General and Administrative Expenses | -14,863 | -19,555 | -14,700 |
Depreciation Expenses | -80,531 | -74,375 | -69,219 |
Impairment Loss on Vessel | 0 | 0 | -12,030 |
Loss on Contract | 0 | -5,000 | 0 |
Fees for provided services | 1,500 | 0 | 0 |
Net Operating Loss | -4,775 | -93,608 | -67,902 |
Interest Income | 181 | 146 | 357 |
Interest Expenses | -12,244 | -11,518 | -5,854 |
Dividends Received | 252 | 0 | 0 |
Gain on shares | 3,286 | 0 | 0 |
Other Financial Income (Expenses) | -1,126 | -391 | 207 |
Total Other Expenses | -9,651 | -11,763 | -5,290 |
Net Loss Before Income Taxes and Equity Income | -14,426 | -105,371 | -73,192 |
Income Tax Expense | -47 | -86 | 0 |
Equity Income | 1,665 | 40 | 0 |
Net Loss | ($12,808) | ($105,417) | ($73,192) |
Basic and Diluted Loss per Share (in dollars per share) | ($0.15) | ($1.64) | ($1.39) |
Basic and Diluted Average Number of Common Shares Outstanding (in shares) | 85,401,179 | 64,101,923 | 52,547,623 |
Cash Dividends per share (in dollars per share) | $0.63 | $0.64 | $1.20 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net Loss | ($12,808) | ($105,417) | ($73,192) |
Other Comprehensive Income (Loss) Current Period | |||
Unrealized Gain (Losses) on Available-for-Sale Securities | -7,194 | 0 | 128 |
Translation Differences | -425 | -160 | 0 |
Unrealized loss on Defined benefit plan | -253 | 0 | 0 |
Reclassification Adjustments | |||
Reclassification of Realized Gains to Net Loss for Available-for-Sale Securities | 0 | 84 | 0 |
Other Comprehensive Income (Loss) | -7,872 | -76 | 128 |
Total Comprehensive Loss | ($20,680) | ($105,493) | ($73,064) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and Cash Equivalents | $100,736 | $65,675 |
Accounts Receivables, net | 16,412 | 18,801 |
Prepaid Expenses | 5,513 | 5,436 |
Inventory | 22,223 | 24,281 |
Voyages in Progress | 29,586 | 14,953 |
Other Current Assets | 2,029 | 2,251 |
Total Current Assets | 176,499 | 131,396 |
Non-Current Assets | ||
Vessels, Net | 909,992 | 911,429 |
Goodwill | 18,979 | 18,979 |
Investment in Nordic American Offshore Ltd | 55,223 | 64,128 |
Other Non-current Assets | 8,331 | 10,504 |
Total Non-current Assets | 992,525 | 1,005,041 |
Total Assets | 1,169,024 | 1,136,437 |
Current Liabilities | ||
Accounts Payable | 6,664 | 6,447 |
Accrued Voyage Expenses | 8,784 | 6,249 |
Accrued Liabilities | 8,587 | 6,567 |
Total Current Liabilities | 24,035 | 19,263 |
Long Term Debt | 250,000 | 250,000 |
Deferred Tax Liability | 0 | 37 |
Deferred Compensation Liability | 12,914 | 12,154 |
Total Liabilities | 286,949 | 281,453 |
Commitment and Contingencies | ||
Shareholders' Equity | ||
Common Stock, Par Value $0.01 per Share 180,000,000 and 90,000,000 authorized, 89,182,001 and 75,382,001 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 892 | 754 |
Additional Paid-in Capital | 114,291 | 208,240 |
Contributed Surplus | 787,732 | 751,567 |
Accumulated Other Comprehensive Income | -8,032 | -160 |
Accumulated Deficit | -12,808 | -105,417 |
Total Shareholders' Equity | 882,075 | 854,984 |
Total Liabilities and Shareholders' Equity | $1,169,024 | $1,136,437 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shareholders' Equity | ||||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | ||
Common Stock, shares authorized (in shares) | 180,000,000 | 90,000,000 | 90,000,000 | 90,000,000 |
Common Stock, shares issued (in shares) | 89,182,001 | 75,382,001 | 52,915,639 | 47,303,394 |
Common Stock, shares outstanding (in shares) | 89,182,001 | 75,382,001 | 52,915,639 | 47,303,394 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Treasury Shares [Member] | Additional Paid-in Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Deficit [Member] | Accumulated Deficit [Member] | Total |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2011 | $473 | $12,867 | $926,733 | ($212) | ($72,298) | $867,563 | |
Balance (in shares) at Dec. 31, 2011 | 47,303,394 | ||||||
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Accumulated coverage of loss | 0 | 0 | -72,298 | 0 | 72,298 | 0 | |
Net Loss | 0 | 0 | 0 | 0 | -73,192 | -73,192 | |
Common Shares Issued, net of issuance costs (in shares) | 5,500,000 | 5,500,000 | |||||
Common Shares Issued, net of issuance costs | 55 | 75,527 | 0 | 0 | 0 | 75,582 | |
Reduction of share premium | 0 | -75,577 | 75,577 | 0 | 0 | 0 | |
Other Comprehensive (Loss) Income | 0 | 0 | 0 | 128 | 0 | 128 | |
Compensation - Restricted Shares (in shares) | 112,245 | ||||||
Compensation - Restricted Shares | 1 | 1,540 | 0 | 0 | 0 | 1,541 | |
Common Shares Repurchased, Equity Incentive Plan (in shares) | -8,500 | 8,500 | |||||
Common Shares Repurchased, Equity Incentive Plan | 0 | 0 | 0 | 0 | 0 | 0 | |
Share-Based Compensation (in shares) | 0 | ||||||
Share-Based Compensation | 0 | 1,258 | 0 | 0 | 0 | 1,258 | |
Return of Capital | 0 | 0 | -63,497 | 0 | 0 | -63,497 | |
Balance at Dec. 31, 2012 | 529 | 15,615 | 866,515 | -84 | -73,192 | 809,383 | |
Balance (in shares) at Dec. 31, 2012 | 52,907,139 | 8,500 | |||||
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Accumulated coverage of loss | 0 | 0 | -73,192 | 0 | 73,192 | 0 | |
Net Loss | 0 | 0 | 0 | 0 | -105,417 | -105,417 | |
Common Shares Issued, net of issuance costs (in shares) | 20,556,250 | 20,556,250 | |||||
Common Shares Issued, net of issuance costs | 206 | 172,405 | 0 | 0 | 0 | 172,611 | |
Other Comprehensive (Loss) Income | 0 | 0 | 0 | -76 | 0 | -76 | |
Common Shares Issued in connection with the Scandic acquisition (in shares) | 1,910,112 | ||||||
Common Shares Issued in connection with the Scandic acquisition | 19 | 18,127 | 0 | 0 | 0 | 18,146 | |
Compensation - Restricted Shares (in shares) | 1,910,112 | ||||||
Common Shares Repurchased, Equity Incentive Plan (in shares) | -14,500 | 14,500 | |||||
Common Shares Repurchased, Equity Incentive Plan | 0 | 0 | 0 | 0 | 0 | 0 | |
Share-Based Compensation (in shares) | 0 | ||||||
Share-Based Compensation | 0 | 2,093 | 0 | 0 | 0 | 2,093 | |
Return of Capital | 0 | 0 | -41,756 | 0 | 0 | -41,756 | |
Balance at Dec. 31, 2013 | 754 | 208,240 | 751,567 | -160 | -105,417 | 854,984 | |
Balance (in shares) at Dec. 31, 2013 | 75,359,001 | 23,000 | |||||
Increase (decrease) in Shareholders' Equity [Roll Forward] | |||||||
Accumulated coverage of loss | 0 | 0 | -105,417 | 0 | 105,417 | 0 | |
Net Loss | 0 | 0 | 0 | 0 | -12,808 | -12,808 | |
Common Shares Issued, net of issuance costs (in shares) | 13,800,000 | 13,800,000 | |||||
Common Shares Issued, net of issuance costs | 138 | 113,295 | 0 | 0 | 0 | 113,433 | |
Reduction of share premium | 0 | -208,240 | 208,240 | 0 | 0 | 0 | |
Other Comprehensive (Loss) Income | 0 | 0 | 0 | -7,872 | 0 | -7,872 | |
Common Shares Repurchased, Equity Incentive Plan (in shares) | -10,000 | 10,000 | |||||
Common Shares Repurchased, Equity Incentive Plan | 0 | -99 | 0 | 0 | 0 | -99 | |
Common Shares Distributed - Equity Incentive Plan (in shares) | 33,000 | -33,000 | |||||
Common Shares Distributed - Equity Incentive Plan | 0 | 0 | 0 | 0 | 0 | 0 | |
Share-Based Compensation (in shares) | 0 | ||||||
Share-Based Compensation | 0 | 1,096 | 0 | 0 | 0 | 1,096 | |
Return of Capital | 0 | 0 | -66,658 | 0 | 0 | -66,658 | |
Balance at Dec. 31, 2014 | $892 | $114,291 | $787,732 | ($8,032) | ($12,808) | $882,075 | |
Balance (in shares) at Dec. 31, 2014 | 89,182,001 | 0 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Common Shares Issued, issuance costs | $0.20 | $0.70 | $2 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operation Activities | |||
Net Loss | ($12,808) | ($105,417) | ($73,192) |
Reconciliation of Net Loss to Net Cash Provided by (Used in) Operating Activates | |||
Depreciation Expense | 80,531 | 74,375 | 69,219 |
Impairment Loss on Vessel | 0 | 0 | 12,030 |
Loss on Contract | 0 | 5,000 | 0 |
Dry-dock Expenditure | -5,346 | -17,928 | -16,538 |
Amortization of Deferred Finance Costs | 1,228 | 1,228 | 1,365 |
Deferred Compensation Liability | 782 | 832 | 1,391 |
Compensation- Restricted Shares | 0 | 0 | 1,540 |
Share-based Compensation | 997 | 2,093 | 1,258 |
Gain on Equity Method Investment | -3,285 | 0 | 0 |
Adjustment of warrants to fair value | 915 | 0 | 0 |
Other, net | 37 | -5 | -170 |
Changes in Operating Assets and Liabilities | |||
Accounts Receivables | 3,539 | -11,435 | 17,532 |
Accounts Receivables, Related Party | 0 | 0 | -11,291 |
Inventory | 2,438 | 3,528 | 3,538 |
Prepaid Expenses and Other Current Assets | 300 | -130 | 7,799 |
Accounts Payable and Accrued Liabilities | 2,784 | -3,796 | -7,609 |
Accounts Payable, Related party | 0 | 0 | 610 |
Voyages in Progress | -14,633 | 4,390 | 5,233 |
Non-current Related party Receivables | 0 | 0 | -13,282 |
Net Cash Provided by (Used in) Operating Activities | 57,479 | -47,265 | -567 |
Cash Flows from Investing Activities | |||
Proceeds from Sale of Marketable Securities | 0 | 600 | 0 |
Investment in Vessels | -73,772 | -6,983 | -2,745 |
Investment in Other Fixed Assets | -281 | -1,864 | 0 |
Deposits and Loan Repayment from Seller | 0 | 5,475 | 9,000 |
Investments in Nordic American Offshore Ltd | -11,403 | -65,004 | 0 |
Acquisition of Orion Tankers Ltd | 0 | -271 | 0 |
Cash arising from obtaining control of Orion Tankers Ltd | 0 | 6,544 | 0 |
Acquisition of Scandic American Shipping Ltd, net of cash acquired | 0 | -7,641 | 0 |
Acquisition of Scandic Assets Held for Sale | 0 | -5,467 | 0 |
Proceeds from Sale of Scandic Assets held for Sale | 0 | 5,467 | 0 |
Change in Restricted Cash | 0 | -5,000 | 0 |
Return of Investments | 3,772 | 0 | 0 |
Other, net | 0 | 889 | -129 |
Net Cash Provided by (Used in) Investing Activities | -81,685 | -73,255 | 6,126 |
Cash Flows from Financing Activities | |||
Proceeds from Issuance of Common Stock | 113,433 | 172,611 | 75,582 |
Proceeds from Use of Credit Facility | 0 | 40,000 | 270,000 |
Repayments on Credit Facility | 0 | -40,000 | -250,000 |
Credit Facility Costs | 0 | 0 | -6,139 |
Dividends Distributed | -54,069 | -41,756 | -63,497 |
Net Cash Provided by Financing Activities | 59,364 | 130,855 | 25,946 |
Net Increase in Cash and Cash Equivalents | 35,158 | 10,335 | 31,505 |
Cash and Cash Equivalents at Beginning of Year | 65,675 | 55,511 | 24,006 |
Effect of Exchange Rate changes on Cash and Cash Equivalents | -97 | -171 | 0 |
Cash and Cash Equivalents at End of Year | 100,736 | 65,675 | 55,511 |
Cash Paid for Interest | 9,700 | 7,158 | 2,928 |
Cash Paid for Taxes | 86 | 214 | 0 |
Fair value of shares distributed as dividend in kind | $12,589 | $0 | $0 |
NATURE_OF_BUSINESS
NATURE OF BUSINESS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
NATURE OF BUSINESS [Abstract] | ||||||
NATURE OF BUSINESS | 1 | NATURE OF BUSINESS | ||||
Nordic American Tankers Limited (“NAT”) was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company’s shares trade under the symbol “NAT” on the New York Stock Exchange. The Company was formed for the purpose of acquiring and chartering double-hull tankers. | ||||||
In January 2013 NAT acquired Scandic American Shipping Ltd. (“Scandic” or the “Manager”) and Orion Tankers Ltd (“Orion”). Accordingly, these financial statements are presented on a consolidated basis for NAT and its subsidiaries (“the Company”). For the year ended December 31 2014 Scandic had the daily administrative, commercial and operational responsibility and Orion has provided services as the pool manager. The Group provided assistance in the formation of Nordic American Offshore in 2013, and Scandic has provided administrative services in 2014. For further details on the acquisition of the subsidiaries please see Note 3 and Note 9. | ||||||
The Company is an international tanker company that currently owns 24 Suezmax tankers, including two newbuildings, an increase from three vessels owned in the autumn of 2004. The Company expects that the expansion process will continue over time and that more vessels will be added to its fleet. The 22 vessels the Company currently operates average approximately 156,000 dwt each. | ||||||
In 2014, 2013 and 2012, the Company chartered all of its operating vessels into a spot market arrangement with Orion. | ||||||
Tanker markets are typically stronger in the fall and winter months (the fourth and first quarters of the calendar year) in anticipation of increased oil consumption in the northern hemisphere during the winter months. Seasonal variations in tanker demand normally result in seasonal fluctuations in spot market charter rates. | ||||||
The Company’s Fleet | ||||||
The Company’s current fleet consists of 24 Suezmax crude oil tankers, including two newbuildings, and all of its 22 vessels in operation are employed in the spot market. The Company has entered into preliminary contracts for the construction of two Suezmax vessels expected to be delivered in the third quarter 2016 and first quarter 2017. | ||||||
Vessel | Yard | Built | Deadweight Tons | Delivered to NAT | ||
Nordic Harrier | Samsung | 1997 | 151,459 | Aug-97 | ||
Nordic Hawk | Samsung | 1997 | 151,475 | Oct-97 | ||
Nordic Hunter | Samsung | 1997 | 151,401 | Dec-97 | ||
Nordic Voyager | Dalian New | 1997 | 149,591 | Nov-04 | ||
Nordic Fighter | Hyundai | 1998 | 153,328 | Mar-05 | ||
Nordic Freedom | Daewoo | 2005 | 159,331 | Mar-05 | ||
Nordic Discovery | Hyundai | 1998 | 153,328 | Aug-05 | ||
Nordic Saturn | Daewoo | 1998 | 157,331 | Nov-05 | ||
Nordic Jupiter | Daewoo | 1998 | 157,411 | Apr-06 | ||
Nordic Moon | Samsung | 2002 | 160,305 | Nov-06 | ||
Nordic Apollo | Samsung | 2003 | 159,998 | Nov-06 | ||
Nordic Cosmos | Samsung | 2003 | 159,999 | Dec-06 | ||
Nordic Sprite | Samsung | 1999 | 147,188 | Feb-09 | ||
Nordic Grace | Hyundai | 2002 | 149,921 | Jul-09 | ||
Nordic Mistral | Hyundai | 2002 | 164,236 | Nov-09 | ||
Nordic Passat | Hyundai | 2002 | 164,274 | Mar-10 | ||
Nordic Vega | Bohai | 2010 | 163,940 | Dec-10 | ||
Nordic Breeze | Samsung | 2011 | 158,597 | Aug-11 | ||
Nordic Aurora | Samsung | 1999 | 147,262 | Sep-11 | ||
Nordic Zenith | Samsung | 2011 | 158,645 | Nov-11 | ||
Nordic Sprinter | Hyundai | 2005 | 159,089 | Jul-14 | ||
Nordic Skier | Hyundai | 2005 | 159,089 | Aug-14 | ||
Newbuild #1 | Sungdong | Aug-16 | ||||
Newbuild #2 | Sungdong | Jan-17 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Accounting: These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | ||
Use of Estimates: Preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The effects of changes in accounting estimates are accounted for in the same period in which the estimates are changed. | ||
Foreign Currency Translation: The functional currency of NAT is the United States (“U.S.”) dollar as all revenues are received in U.S. dollars and the majority of the expenditures are incurred and paid in U.S. dollars. NAT’s reporting currency is also the U.S. dollar. Transactions in foreign currencies during the year are translated into U.S dollars at the rates of exchange in effect at the date of the transaction. The subsidiary of Orion Tankers Ltd, Orion Tankers AS, and the European branch of Scandic American Shipping Ltd, both have Norwegian Kroners as their functional currency. The financial statements of these entities are translated as part of the consolidation of the Group. | ||
Revenue and Expense Recognition: Revenues and expenses are recognized on the accruals basis. Revenues are generated from spot charters. | ||
Voyage revenues and expenses are recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. The impact of recognizing voyage expenses ratably over the length of each voyage is not materially different on a quarterly and annual basis from a method of recognizing such costs as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. Based on the terms of the customer agreement, a voyage is deemed to commence upon the completion of discharge of the vessel’s previous cargo and is deemed to end upon the completion of discharge of the current cargo. However, the Company does not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. | ||
Spot Charters: Revenues and voyage expenses of the vessels operating on spot charters are tankers typically chartered for a single voyage which may last up to several weeks. Revenue is generated from freight billing, as the Company is responsible for paying voyage expenses and the charterer is responsible for any delay at the loading or discharging ports. When the Company’s tankers are operating on spot charters the vessels are traded fully at the risk and reward of the Company. For vessels operating in the spot market other than through the pool (described below under “Cooperative arrangement”), the vessels will be operated by the pool manager. Under this type of employment, the vessel’s revenues are not included in the profit sharing of the participating vessels in the pool. The Company considers it appropriate to present the gross amount earned revenue from the spot charter, showing voyage expenses related to the voyage separately in the statements of operations. | ||
Cooperative Arrangement: Revenues and voyage expenses of the vessels operating in pool arrangements, through cooperative arrangements, are combined and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to pool participants according to an agreed formula. Formulas used to allocate net revenues vary among different cooperative arrangements, but generally, revenues are allocated to participants on the basis of the number of days a vessel operates with weighting adjustments made to reflect each vessels’ differing capacities and performance capabilities. The same revenue and expense principles stated above are applied in determining the pool’s net pool revenues. The manager of the cooperative agreements is responsible for collecting voyage revenue, paying voyage expenses and distributing net pool revenues to the owners of the participating vessels. | ||
Until November 5, 2012 the Company’s net voyage revenues were generated from cooperative agreements with other vessels that are not owned by the Company. The Company considers it appropriate to record the net voyage revenues, in which the Company is not regarded as the principal of its vessels’ activities based on the net method. The Company accounts for the net revenues allocated by these cooperative agreements as “Voyage Revenue” in its statements of operations. | ||
Orion was established as equally owned by the Company and Frontline Ltd. (“Frontline”). On November 5, 2012, Frontline completed the withdrawal of its nine Suezmax tankers from the cooperative agreements, following which the Orion Tankers pool consists of 20 Suezmax vessels, all owned by the Company. The Company considers it appropriate to present the gross amount of earned revenue from the cooperative agreements from November 5, 2012, showing voyage expenses related to the voyage separately in the statements of operations. | ||
When in the cooperative arrangements described above a vessel which did not temporarily comply with the pool requirements, the vessel will continue to be operated in the spot market by the pool manager, as described above under “Spot Charters.” | ||
Vessel Operating Expenses: Vessel operating expenses include crewing, repair and maintenance, insurance, stores, lubricants, management fee, communication expenses and tonnage tax. These expenses are recognized when incurred. | ||
Consolidation: Entities in which NAT has controlling financial interest are consolidated in accordance with Accounting Standard Codification (“ASC”) Topic 810, “Consolidation”. Subsidiaries are consolidated from the date on which control is obtained. The subsidiaries’ accounting policies are in conformity with U.S. GAAP. | ||
Cash and Cash Equivalents: Cash and cash equivalents consist of highly liquid investments such as time deposits with original maturities of three months or less. | ||
Marketable Securities: Marketable equity securities held by the Company are considered to be available-for-sale securities and as such are carried at fair value. Any resulting unrealized gains and losses, are recorded as a separate component of other comprehensive income in equity unless the securities are considered to be other than temporarily impaired, in which case unrealized losses are recorded in the statement of operations. Dividends received on available-for-sale securities are recognized in the statement of operations as other financial income. | ||
Accounts Receivable: Accounts and other receivables are presented net of allowances for doubtful balances. If amounts become uncollectable, they are charged against income when that determination is made. | ||
Inventories: Inventories, which are comprised of bunker fuel and lubrication oil, are stated at the lower of cost or market. Cost is determined on a first-in, first-out (“FIFO”) basis. | ||
Vessels, Net: Vessels are stated at their historical cost, which consists of the contracted purchase price and any direct expenses incurred upon acquisition (including improvements, on site supervision expenses incurred during the construction period, commissions paid, delivery expenses and other expenditures to prepare the vessel for its initial voyage) less accumulated depreciation. Financing costs incurred during the construction period of the vessels are also capitalized and included in vessels’ cost based on the weighted-average method. Certain subsequent expenditures for conversions and major improvements are also capitalized if it is determined that they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessel. Depreciation is calculated based on cost less estimated residual value, and is provided over the estimated useful life of the related assets using the straight-line method. The estimated useful life of a vessel is 25 years from the date the vessel is delivered from the shipyard. Repairs and maintenance are expensed as incurred. | ||
Impairment of Vessels: | ||
The Company reviews for impairment long-lived assets held and used whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In this respect, the Company reviews its assets for impairment on an asset by asset basis. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for impairment loss. The impairment loss is determined by the difference between the carrying amount of the asset and fair value (calculated based on estimated discounted operating cashflow). In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions being related to charter rates, fleet utilization, operating expenses, capital expenditures, residual value and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. The estimated net operating cash flows are determined by considering an estimated daily time charter equivalent for the remaining operating days. The Company estimates the daily time charter equivalent for the remaining operating days based on the most recent fifteen year historical average for similar vessels and utilizing available market data for spot market rates over the remaining estimated life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, net of brokerage commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking expenditures). The salvage value used in the impairment test is estimated to be $9.7 million per vessel. If the Company’s estimate of undiscounted future cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair value if the fair value is lower than the vessel’s carrying value. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are subjective. There can be no assurance as to how long charter rates and vessel values will remain at their currently low levels or whether they will improve by any significant degree. In 2012, the Company recognized impairment charges on one vessel using an individual approach. There was no impairment on vessels in 2014 and 2013. | ||
Drydocking: The Company’s vessels are required to be drydocked approximately every 30 to 60 months. The Company capitalizes a substantial portion of the costs incurred during drydocking and amortizes those costs on a straight-line basis from the completion of a drydocking or intermediate survey to the estimated completion of the next drydocking. Consistent with prior periods, drydocking costs include a variety of costs incurred while vessels are placed within drydock, including expenses related to the dock preparation and port expenses at the drydock shipyard, general shipyard expenses, expenses related to hull, external surfaces and decks, expenses related to machinery and engines of the vessel, as well as expenses related to the testing and correction of findings related to safety equipment on board. The Company includes in capitalized drydocking those costs incurred as part of the drydock to meet classification and regulatory requirements. The Company expenses costs related to routine repairs and maintenance performed during drydocking, and for annual class survey costs. Ballast tank improvements are capitalized and amortized on a straight-line basis over a period of eight years. The capitalized and unamortized drydocking costs are included in the book value of the vessels. Amortization expense of the drydocking costs is included in depreciation expense. | ||
Investments in Equity Method Investees: Investments in other entities where the Company has a “significant influence” in accordance with U.S. GAAP are accounted for using the equity method of accounting. Under the equity method of accounting, the investment is stated at initial cost and is adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investment in equity method investees for impairment when events or circumstances indicate that the carrying value of the investment may have experienced an other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in net income (loss). | ||
Investment in Securities: Investment in securities in other entities where the Company does not have a “significant influence” is accounted for as available for sale when the securities have readily determinable fair values. Such investments are adjusted to fair value each reporting period, with the unrealized gain or loss being accounted in “Other Comprehensive Income” in the Balance Sheet. Gains and losses are recorded in the net income (loss) when securities are sold. Unrealized loss which is considered as an other than temporary decline is recorded in net income (loss). | ||
Business combinations: The Company uses the acquisition method of accounting, which requires an acquirer in a business combination to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their fair values at the acquisition date. The costs of the acquisition and any related restructuring costs are to be recognized separately in the Consolidated Statements of Operations. The acquired company's operating results are included in the Company's consolidated financial statements starting on the date of acquisition. | ||
The purchase price is equivalent to the fair value of the consideration transferred and liabilities incurred. Tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the acquisition date fair value. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed. | ||
Goodwill: Goodwill is not amortized, but reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Company may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Company may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Company uses a discounted cash flow model to determine the fair value of the reporting unit, unless there is a readily determinable fair market value. | ||
Deferred Compensation Liability: The Company has two individual deferred compensation agreements with the Company’s CEO and CFO & EVP. The deferred compensation liabilities are denominated in Norwegian currency. The liabilities are accounted for on an accrual basis using actuarial calculations. Any currency translation adjustments as well as actuarial gains and losses are recognized in general and administration expenses as incurred. | ||
Defined Benefit Plan: | ||
The employees of the subsidiaries have defined benefit pension plans. The Company accrues the costs and related obligations associated with its defined benefit pension plans based on actuarial computations using the projected benefits obligation method and management’s best estimates of expected plan investment performance, salary escalation, and other relevant factors. For the purpose of calculating the expected return on plan assets, those assets are valued at fair value. The overfunded or underfunded status of the defined benefit pension plans are recognized as assets or liabilities in the consolidated balance sheet. The Company recognizes as a component of other comprehensive loss, the gains or losses that arise during a period but that are not recognized as part of net periodic benefit costs | ||
Other Comprehensive Income (Loss): The Company follows the guidance in ASC Topic 220, “Comprehensive Income” which requires separate presentation of certain transactions that are recorded directly as components of shareholders’ equity. | ||
Segment Information: The Company has identified only one operating segment. The Company has only one type of vessel – Suezmax crude oil tankers. | ||
Geographical Segment: The Company does not provide a geographical analysis because the Company’s business is global in nature and the location of its vessels continually changes. | ||
Fair Value of Financial Instruments: The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate carrying value because of the short-term nature of these instruments. For further information on fair value of financial instruments please see Note 17. | ||
Deferred Financing Costs: Finance costs, including fees, commissions and legal expenses, which are recorded in the Balance Sheet are deferred and amortized on a straight-line basis over the term of the debt agreement. Using the straight line basis is not materially different than using the interest method Amortization of finance costs are included in “Interest Expense” in the Statement of Operations. | ||
Stock-Based Payments: | ||
Share-Based Compensation: The compensation costs for all of the Company’s stock-based compensation awards are based on the fair value method. As of December 31, 2014 the Company does not have any stock based compensation. | ||
Restricted Shares to Employees and Non-Employees: The fair value of restricted shares is estimated based on the market price of the Company’s shares. The fair value of unvested restricted shares granted to employees is measured at grant date and the Company records the compensation expense for such awards over the requisite service period. The fair value of unvested restricted shares granted to non-employees is measured at fair value at each reporting date and the Company records the compensation expense for such awards over the period the service is rendered by the non-employee. | ||
Restricted Shares to Manager: Restricted shares issued to the Manager are non-forfeitable and vest immediately. Accordingly, the compensation expense for each of the respective issuances was measured at fair value on the date the award was issued, or the grant date, and expensed immediately as performance was deemed to be complete. The fair value was determined using the Company’s stock price on the date of grant. | ||
The agreement which gave the Manager the right to be issued restricted shares was terminated when the Manager was acquired in January 2013. | ||
Income Taxes: The Company is incorporated in Bermuda. Under current Bermuda law, the Company is not subject to corporate income taxes. | ||
The Group includes two wholly-owned subsidiaries in Norway which are subject to income tax in their jurisdictions at 28 % of their taxable profit. The income tax incurred in Norway for the year ended December 31, 2014 and 2013 was $47,000 and $65,000, respectively. | ||
Concentrations: | ||
Fair value: The Company operates in the shipping industry which historically has been cyclical with corresponding volatility in profitability and vessel values. Vessel values are strongly influenced by charter rates which in turn are influenced by the level and pattern of global economic growth and the world-wide supply and demand for vessels. The spot market for tankers is highly competitive and charter rates are subject to significant fluctuations. Dependence on the spot market may result in lower utilization. Each of the aforementioned factors is an important consideration associated with the Company’s assessment of whether the carrying amounts of its own vessels are recoverable. | ||
Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The fair value of the financial instrument approximates the net book value. The Company maintains its cash with financial institutions it believes are reputable. The terms of these deposits are on demand to minimize risk. The Company has not experienced any losses related to these cash deposits and believes it is not exposed to any significant credit risk. However, due to the current financial crisis the maximum credit risk the Company would be exposed to is a total loss of outstanding cash and cash equivalents and accounts receivable. See Note 4 for further information. | ||
Accounts receivable, net, consists of uncollateralized receivables from international customers engaged in the international shipping industry. The Company routinely assesses the financial strength of its customers. Accounts receivable are presented net of allowances for doubtful accounts. If amounts become uncollectible, they will be charged to operations when that determination is made. For the years ended December 31, 2014 and 2013, the Company did not record an allowance for doubtful accounts. | ||
Interest risk: The Company is exposed to interest rate risk for its debt borrowed under the Credit Facility. In certain situations, the Company may enter into financial instruments to reduce the risk associated with fluctuations in interest rates. The Company has no such outstanding derivatives at December 31, 2014 and 2013, and has not entered into any such arrangements during 2014, 2013 or 2012. | ||
Recent Accounting Pronouncements: | ||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Costumers, which provides new authoritative guidance on the methods of revenue recognition and related disclosure requirements. The ASU will be effective for the first interim period beginning after December 15, 2016 and early adoption is not permitted. The Company is in the process of evaluating the impact of this standard, if any, on its consolidated statements and related disclosures. | ||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides new authoritative guidance regarding management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is not planning to early adopt, and the adoption is not expected to have material impact on the consolidated financial statements. | ||
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which provides new authoritative guidance regarding whether reporting entities should consolidate certain legal entities. The standard is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity also may apply the amendments retrospectively. The Company is not planning to early adopt, and the adoption is not expected to have material impact on the consolidated financial statements |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |
Dec. 31, 2014 | ||
RELATED PARTY TRANSACTIONS [Abstract] | ||
RELATED PARTY TRANSACTIONS | 3 | RELATED PARTY TRANSACTIONS |
Scandic American Shipping Ltd.: | ||
In June 2004, the Company entered into a Management Agreement with Scandic. The Manager has been, from its inception and up to January 10, 2013, owned by a company controlled by the Chairman and Chief Executive Officer of the Company, Mr. Herbjørn Hansson and his family. In order to align the Manager’s interests with those of the Company, the Company pursuant to the Management Agreement issued to the Manager restricted common shares equal to 2% of the Company’s outstanding common shares, through January 1, 2013. The arrangement ended when the Company acquired the Manager, as described below. | ||
The Manager has the daily administrative, commercial and operational responsibility for the Company’s vessels and is required to manage the Company’s day-to-day business subject to the Company’s objectives and policies as established by the Board of Directors. | ||
On December 15, 2012, the Company entered into an agreement to acquire 100% of the shares of the Manager. The acquisition is described in note 9. | ||
For its services under the Management Agreement, the Manager receives a management fee of $150,000 per annum for the total fleet and is reimbursed for all of its costs incurred in connection with its services. The management fee was reduced from $500,000 to $150,000 per annum effective January 10, 2013. | ||
The Company recognized $3.9 million of total costs for services provided under the Management Agreement for the year ended December 31, 2012. These costs are included in “General and Administrative Expenses” in the statements of operations. All fees paid, and related party balances, are eliminated in the consolidated financial statements as of and for the year ended December 31, 2014 and 2013. | ||
In February 2011, the Company adopted an equity incentive plan which the Company refers to as the 2011 Equity Incentive Plan, pursuant to which a total of 400,000 restricted shares were reserved for issuance. All of 400,000 restricted shares were allocated among 23 persons employed in the management of the Company, including the Manager and the members of the Board. On January 10, 2013, the Board of Directors amended the vesting requirements for 174,000 shares allocated to the Manager lifting the vesting requirements by means of accelerated vesting. The modification to the vesting requirements resulted in $1.1 million being charged to General and Administrative expense during the first quarter of 2013. | ||
In January 2014, the Company distributed 33,000 of its Treasury Shares among 14 persons employed in Scandic and Orion. | ||
As of December 31, 2014, a total number of 226,000 restricted common shares that are subject to vesting have been allocated among 27 persons employed in the management of the Company, by the Manager, Orion and the members of the Board of Directors. The holders of the restricted shares are entitled to voting rights as well as to receive dividends paid during the vesting period. | ||
Board Member and Employees: | ||
Mr. Jan Erik Langangen, Board Member and advisor of the Company, is a partner of Langangen & Helset Advokatfirma AS, a firm which provides legal services to the Company. The Company recognized $0.1 million in costs in each of the years ended December 31, 2014, 2013 and 2012, respectively, for the services provided by Langangen & Helset Advokatfirma AS. These costs are included in “General and Administrative Expenses” within the statements of operations. There was $0 million included within “Accounts Payable” at December 31, 2014 and 2013, respectively. | ||
In 2014 NAT entered into an agreement with an immediate family member of the Chairman, for the use of an asset owned by him for corporate and marketing activities. NAT pays a fixed annual fee for this agreement and fees associated with the actual use. The cost of this arrangement for the year ended December 31, 2014 was $0.1 million, which is included in General and Administrative costs. No amounts were due to the related party as of December 31, 2014. | ||
Orion Tankers Ltd.: | ||
Orion was established as a pool manager equally owned by the Company and Frontline. In September 2012, it was agreed that Frontline would withdraw its nine Suezmax tankers from the pool during the fourth quarter of 2012. The withdrawal of these vessels was completed effective November 5, 2012. Effective January 2, 2013 the Company acquired Frontline’s shares in Orion at their nominal book value as of December 31, 2012, after which Orion became a wholly-owned subsidiary of the Company. | ||
As of December 31, 2014 and 2013, Orion is a subsidiary and all intercompany balances and transactions have been eliminated in the consolidated financial statements. | ||
Nordic American Offshore Ltd.: | ||
Nordic American Offshore Ltd. (“NAO”) was established on November 27, 2013 with a private equity placement of $250 million, and operates Platform Supply Vessels (“PSV”) in the offshore sector. NAT participated with $65 million in the equity placement, which gave an ownership of 26 %. As of December 31, 2013, NAO was accounted for using the equity method of accounting. During 2014 ownership has been reduced to 17% and the Company no longer has significant influence over NAO. Accordingly the investment is recognized as an available for sale security as of December 31, 2014. The investment is measured at fair value, and unrealized gains and losses are excluded from earnings, and reported as other comprehensive income until realized. Dividend income is recognized in earnings, a total of $0.2 million has been recognized in other financial items for the year ended December 31, 2014. | ||
In December 2014 the Company acquired 488,216 shares in the market, giving an ownership of 19.2 % as of December 31, 2014. | ||
In addition to participating in the equity placement the Company also assisted with the coordination of the establishment of NAO. As compensation for its services the Company received 833,333 warrants with an exercise price of $15.00 per common share. The warrants vest in 20 % increments at each 10% increase in the volume weighted average price, or VWAP, of NAO’s common shares between increases of 25% to 65%. The VWAP must be above an exercise level for a minimum of 10 business days, with a minimum trading volume of $2 million above exercise levels. As of December 31, 2014 333,333 warrants have vested, but have not been exercised and are not in the money as of December 31, 2014. The warrants expire on December 31, 2015. | ||
Scandic performs supportive functions for NAO from January 1, 2014 which generate external revenues for the Group. In addition, general and administrative costs incurred by Scandic, which in prior periods have been fully reimbursed by NAT, are allocated for reimbursement between NAO and NAT from January 1, 2014. | ||
For further information and details on the investment in NAO please see Note 9. |
REVENUE
REVENUE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
REVENUE [Abstract] | |||||||||||||
REVENUE | 4 | REVENUE | |||||||||||
In 2014, 2013 and 2012, the Company chartered all of its operating vessels into a spot market arrangement with Orion. The Orion Tankers Pool was established in November 2011, and was equally owned by the Company and Frontline until the Company acquired the remaining shares in January 2013. | |||||||||||||
The table below provides the breakdown of revenues recorded as per the net method and the gross method. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Voyage Revenues | |||||||||||||
All figures in USD ‘000 | |||||||||||||
Net pool spot market earnings, cooperative arrangements | - | - | 77,287 | ||||||||||
Gross pool spot market earnings, Orion Tankers pool | - | - | 36,339 | ||||||||||
Gross spot market earnings, through spot charters | 351,049 | 243,657 | 17,056 | ||||||||||
Total Voyage Revenues | 351,049 | 243,657 | 130,682 | ||||||||||
The Orion Tankers Pool accounted for 98% and Gemini Tankers LLC accounted for 2% of the Company’s revenues for the year ended December 31, 2012. For the year ended December 31, 2014 two customers accounted for 40% of the total revenues, and for the year ended December 31, 2013 two customers accounted for 42% of the total revenues. | |||||||||||||
Accounts receivable, net, as of December 31, 2014 and 2013 were $16.4 million and $18.8 million, respectively. Three charterers accounted for 62% of outstanding amount as of December 31, 2014 and, four charterers accounted for 52 % the outstanding amount as of December 31, 2013. |
GENERAL_AND_ADMINISTRATIVE_EXP
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES [Abstract] | |||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 5 | GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||
2014 | 2013 | 2012 | |||||||||||
All figures in USD ‘000 | |||||||||||||
Management fee to related party | - | - | 500 | ||||||||||
Directors and officers insurance | 86 | 80 | 74 | ||||||||||
Salaries and wages | 7,734 | 6,560 | 3,282 | ||||||||||
Audit, legal and consultants | 1,431 | 5,575 | 1,007 | ||||||||||
Administrative services provided by related party | - | - | 3,930 | ||||||||||
Other fees and expenses | 4,076 | 4,213 | 1,718 | ||||||||||
Compensation – Restricted shares to Manager | - | - | 1,540 | ||||||||||
Share-based compensation | 1,096 | 2,093 | 1,258 | ||||||||||
Deferred compensation plan | 440 | 1,033 | 1,391 | ||||||||||
Total for year ended December 31, | 14,863 | 19,555 | 14,700 | ||||||||||
General and administrative expenses for the year ended December 31, 2014 and 2013 also include those of Scandic and Orion. Accordingly, the administrative services provided by related party are eliminated, and the expenses in the subsidiaries are presented under the remaining items. | |||||||||||||
Expenses for “Audit, legal and consultants” for the year ended December 31, 2013 include one-time charges related to the acquisition of Scandic of $2.5 million and legal fees related to the Gulf Navigation Holding PSJ arbitration of $1.0 million. | |||||||||||||
Expenses for “Other fees and expenses” for the year ended December 31, 2013 include one- time charges related to the acquisition of Scandic of $1.1 million, and $2.2 million in General and Administrative expenses incurred in the subsidiaries. | |||||||||||||
The subsidiaries employees have a deferred group benefit plan. The deferred liability for the employees as of December 31, 2014 and 2013 are $0.4 million and $0.1 million, respectively, and recognized cost in the statement of operations for the year ended December 31, 2014 and 2013 is $0.4 million and $0.3 million, respectively. |
DEFERRED_COMPENSATION_LIABILIT
DEFERRED COMPENSATION LIABILITY | 12 Months Ended | |
Dec. 31, 2014 | ||
DEFERRED COMPENSATION LIABILITY [Abstract] | ||
DEFERRED COMPENSATION LIABILITY | 6 | DEFERRED COMPENSATION LIABILITY |
In 2010, the Board of Directors approved an unfunded deferred compensation agreement for Turid M. Sørensen, the Company’s Chief Financial Officer and Executive Vice President. The agreement provides for unfunded deferred compensation computed as a percentage of salary, and certain benefits for dependents. The deferred compensation liabilities are denominated in Norwegian currency. Benefits vest over a period of employment of 20.5 years up to a maximum of 66% of the salary level at the time of retirement, age of 67. Interest is imputed at 2.30% and 4.00% as of December 31, 2014 and 2013, respectively. The rights under the agreement commenced in May 2008. As the agreement was effective in 2010, vested rights under the agreement were recognized in 2010. | ||
In May 2007, the Board of Directors approved an unfunded deferred compensation agreement for Herbjørn Hansson, the Chairman, President and CEO. The agreement provides for unfunded deferred compensation computed as a percentage of salary, and certain benefits for dependents. The deferred compensation liabilities are denominated in Norwegian currency. Benefits vest over a period of employment of 14 years up to a maximum of 66% of the salary level at the time of retirement, age of 70. Interest is imputed at 2.30% and 4.00% as of December 31, 2014 and 2013, respectively. The rights under the agreement commenced in October 2004. The CEO has the right to require a bank guarantee for the deferred compensation liability and the CEO has served in his position since the inception of the Company in 1995. | ||
The total expense, related to the deferred compensation agreements for the Chairman, President and CEO and for the Company’s Chief Financial Officer and Executive Vice President, recognized in 2014, 2013 and 2012 were $0.4 million, $0.8 million and $1.4 million, respectively. |
VESSELS_NET
VESSELS, NET | 12 Months Ended | |||
Dec. 31, 2014 | ||||
VESSELS, NET [Abstract] | ||||
VESSELS, NET | 7 | VESSELS, NET | ||
Vessels, net, consist of the carrying value of 22 vessels and 20 vessels for the year ended December 31, 2014 and December 31, 2013, respectively. Vessels, net include drydocking costs. | ||||
All Figures in USD ‘000 | Vessels | Drydocking | Total | |
Carrying Value December 31, 2013 | 872,846 | 38,583 | 911,429 | |
Accumulated Depreciation December 31, 2013 | 460,422 | 27,063 | 487,485 | |
Depreciation Expense 2013 | 62,781 | 11,241 | 74,022 | |
Carrying Value December 31, 2014 | 882,221 | 27,771 | 909,992 | |
Accumulated Depreciation December 31, 2014 | 524,651 | 42,994 | 567,645 | |
Depreciation Expense 2014 | 64,229 | 15,931 | 80,160 | |
Acquisition of vessels 2014 | 73,604 | 300 | 73,904 | |
Impairment Loss on Vessels | ||||
The Company recorded impairment loss on vessels of $nil, $nil and $12.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of each of its vessels may not be recoverable. For the year ended December 31, 2014 the Company performed impairment tests at each quarter end. Impairment tests performed did not result in carrying value for any of the Company’s vessels exceeding future undiscounted cash flows. | ||||
During the fourth quarter of 2012, the Company identified one vessel where the Company believed that future undiscounted cash flow was less than the carrying value and therefore not fully recoverable. The impairment loss recorded is equal to the difference between the asset's carrying value and estimated fair value. |
OTHER_NONCURRENT_ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER NON-CURRENT ASSETS [Abstract] | |||||||||
OTHER NON-CURRENT ASSETS | 8 | OTHER NON-CURRENT ASSETS | |||||||
2014 | 2013 | ||||||||
All figures in USD ‘000 | |||||||||
Fixture, Furniture and Equipment | 1,099 | 1,129 | |||||||
Warrants | - | 915 | |||||||
Deferred Finance Costs | 2,232 | 3,460 | |||||||
Long term deposit | 5,000 | 5,000 | |||||||
Total as of December 31, | 8,331 | 10,504 | |||||||
Fixture, furniture and equipment were acquired as part of the acquisition of Orion and Scandic. | |||||||||
The long term deposit relates to the Company transferring cash to a restricted account in accordance with the deferred compensation agreement for Herbjørn Hansson, the Chairman, President and CEO, described in Note 6. | |||||||||
The deferred finance cost is a result of the Company entering into a $430 million revolving credit facility (the “2012 Credit Facility”). The finance cost of $6.1 million that were incurred was deferred and is being amortized over the term of the 2012 Credit Facility on a straight-line basis. The 2012 Credit Facility matures in late October 2017. | |||||||||
For further information related to the warrants please see Note 9 |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
INVESTMENTS [Abstract] | |||||
INVESTMENTS | 9 | INVESTMENTS | |||
Acquisition of Subsidiaries | |||||
Effective January 10, 2013 the Company acquired Scandic American Shipping Ltd. The purchase price was $33.3 million, of which $18.1 million was paid in shares, $8.0 million was paid in cash and $7.2 million was payable to the seller for additional assets which were sold during the first quarter of 2013. The number of shares issued were 1,910,112, trading at $9.50 on the acquisition date. The share component of the purchase price is subject to a one-year lock-up, while the cash component was primarily used by the seller to pay taxes associated with this transaction. The transaction was effective January 10, 2013. The Manager is a wholly-owned subsidiary of the Company. In addition to gaining full direct control of the Manager’s operations, the Company is no longer obligated to maintain the Managers ownership of the Company’s common shares at 2%. The Company shares owned by the Manager were not part of the transaction and remained with the seller. The acquisition was accounted for using the acquisition method. | |||||
Effective January 2, 2013, the Company acquired the remaining 50% of Orion at its nominal book value as of December 31, 2012. It was determined that the fair value of the assets and liabilities of Orion matched their book values. Fair value of total assets acquired was $1.8 million and liabilities assumed $1.3 million, accordingly the cash consideration for the Company was $0.3 million for the 50% stake and no goodwill or gain/loss was recognized. | |||||
All services provided by Orion were to the Group for the year ended December 31, 2013. Scandic has provided management services to NAO for the years ended December 31, 2014 and 2013, all other services provided by Scandic was to the Group. All intercompany transactions and balances are eliminated in the Consolidated Financial Statements. | |||||
For further background related to the acquisitions please see Note 3. | |||||
The fair value of the assets and liabilities of Scandic were determined with the assistance of an external valuation specialist. The following is a summary of the fair values of the assets and liabilities: | |||||
Amounts in $ million | Scandic | ||||
As of January 10, 2013 | |||||
ASSETS | |||||
Cash and cash equivalents | 0.4 | ||||
Assets held for sale | 6.6 | ||||
Other current assets | 2.4 | ||||
Furniture, fixture and equipment | 1 | ||||
Other non-current assets | 0.2 | ||||
Total assets acquired | 10.6 | ||||
LIABILITIES | |||||
Accounts payable | 0.2 | ||||
Tax payable | 0.2 | ||||
Other current liabilities | 0.9 | ||||
Total liabilities assumed | 1.3 | ||||
Net assets acquired | 9.3 | ||||
Cash consideration | 8 | ||||
Common shares issued | 18.1 | ||||
Payable to seller | 7.2 | ||||
Total consideration | 33.3 | ||||
Net assets acquired | 9.3 | ||||
Difference | 24 | ||||
Settlement loss | 5 | ||||
Net Goodwill recognized | 19 | ||||
Assembled workforce was identified. However as ASC 805 precludes recognition of workforce as a separate intangible asset workforce value is included in Goodwill recognized. | |||||
The settlement loss of $5.0 million relates to a preexisting contractual relationship between the acquirer and acquiree which was recognized as a loss on contract in the Consolidated Statement of Operations for the year ended December 31, 2013. | |||||
Acquisition related expenses amounted to $3.6 million, which was recognized in General and Administrative expenses in the Consolidated Statements of Operations. For further information on the costs please see Note 5. | |||||
Investments in Nordic American Offshore Ltd | |||||
NAO was established on November 27, 2013 with a private equity placement of $250 million. The Company participated with $65 million, which represented 26 % of the Company. | |||||
The investment gave the Company significant influence over NAO, and the investment was accounted for using the equity method of accounting. The method of accounting is described in Note 2. The Company recognized equity income of $40,000 on the investment for the year ended December 31, 2013. | |||||
In 2014 NAT distributed 699,802 NAO shares as dividend-in-kind to its shareholders. The shares were measured at fair value at the time of the distribution, and a gain of $2.1 million was recognized in the Statement of Operations. | |||||
The distribution of shares reduced the Company’s ownership to 17%. Based on the remaining ownership in NAO and that the Company does not have a right or opportunity to elect or remove Board Members in NAO, the Company determined that it no longer has significant influence over NAO and has discontinued accounting for the investment as an equity method investment. The investment has a readily determinable fair value, and has been subsequently classified as available for sale. | |||||
Before discontinuing the equity method, equity income of $1.7 million and gain on shares of $3.3 million were recognized in the Statements of Operations and Cash dividends of $2.1 million were received from NAO. Dividends in excess of equity income are a return of investment, and were recognized as a reduction of the carrying value of the investment. | |||||
Subsequent to discontinuing the equity method, the Company has received $3.6 million cash as dividend from NAO. Of this amount $3.4 million is a return of investment, which has reduced the cost value of the investment in NAO. | |||||
NAO was stock listed on NYSE June 12, 2014. As compensation for coordinating this transaction NAT received 833,333 warrants with an exercise price of $15.00 per common share. The warrants vest in 20 % increments at each 10% increase in the volume weighted average price, or VWAP, of NAO’s common shares between increases of 25% to 65%. The VWAP must be above an exercise level for a minimum of 10 business days, with a minimum trading volume of $2 million above exercise levels. As of December 31, 2014 333,333 of the warrants have vested, but have not been exercised and are not in the money. The warrants expire on December 31, 2015. | |||||
The warrants were recognized as “Other Non-current Assets” in the Consolidated Balance Sheets as of December 31, 2013. As of December 31, 2014 the warrants have no accounted value. |
SHAREBASED_COMPENSATION_PLAN
SHARE-BASED COMPENSATION PLAN | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SHARE-BASED COMPENSATION PLAN [Abstract] | |||||||||||||||||
SHARE-BASED COMPENSATION PLAN | 10 | SHARE-BASED COMPENSATION PLAN | |||||||||||||||
Management Agreement | |||||||||||||||||
In order to align the Manager’s interests with the Company’s, the Company agreed to issue to the Manager restricted common shares equal to 2% of its outstanding common shares at par value of $0.01 per share. Any time additional common shares are issued, the Manager was entitled to receive additional restricted common shares to maintain the number of common shares issued to the Manager at 2% of total outstanding common shares. During the years ended December 31, 2012, the Company issued to the Manager 112,245 restricted shares at an average fair value of $13.73. In December 2012, the Company announced that it would acquire 100% of the shares of the Manager. The acquisition was effective January 10, 2013. In addition to gaining full direct control of the Manager’s operations, the Company is no longer obligated to maintain the Manager’s ownership of the Company’s common shares at 2%. The compensation for the Manager was partly in shares, and the Company issued 1,910,112 new shares related to the acquisition, the shares have a lock up period of one year from issuance. | |||||||||||||||||
Equity Incentive Plan 2011 | |||||||||||||||||
In 2011, the Board of Directors decided to establish a new incentive plan involving a maximum of 400,000 restricted shares of which all 400,000 shares have been allocated among 23 persons employed in the management of the Company, the Manager and the members of the Board of Directors. These allocated shares constituted 0.8% of the outstanding shares of the Company. The vesting period is four year cliff vesting period for 326,000 shares and five year cliff vesting period for 74,000 shares, that is, none of these shares may be sold during the first four or five years after grant, as applicable, and the shares are forfeited if the grantee leaves the Company before that time. The holders of the restricted shares are entitled to receive dividends paid in the period as well as voting rights. The Board considers this arrangement to be in the best interests of the Company. | |||||||||||||||||
Of the 400,000 shares of restricted stock awards granted under the equity incentive plan, 326,000 restricted shares were granted on February 23, 2011, at a grant date fair value of $23.88 per share, and 74,000 restricted shares were granted on August 5, 2011, at a grant date fair value of $18.05 per share. The Company repurchased 10,000, 14,500 and 8,500 restricted common shares in 2014, 2013 and 2012, respectively. These shares were originally granted on February 23, 2011. | |||||||||||||||||
The fair value of restricted shares is estimated based on the market price of the Company’s shares. The fair value of restricted shares granted to employees is measured at grant date and the fair value of unvested restricted shares granted to non-employees is measured at fair value at each reporting date. | |||||||||||||||||
The shares are considered restricted as the shares vest after a period of four years and five years from the time of distribution. | |||||||||||||||||
The compensation cost for employees, Directors and non-employees is recognized on a straight-line basis over the vesting period and is presented as part of the General and Administrative expenses. The total compensation cost related to restricted shares under the plan for the year ended December 31, 2014 was $1.1 million, compared to 2.1 million for the year ended December 31, 2013 and $1.3 million for the year ended December 31, 2012. | |||||||||||||||||
In 2014, 2013 and 2012 respectively, the Company repurchased from employees who had resigned from the Manager 10,000, 14,500 and 8,500 restricted common shares that had a four-year cliff vesting period. The total 33,000 restricted common shares was held as treasury shares as of December 31, 2013, and distributed to new employees in the Manager and Orion in 2014. | |||||||||||||||||
In 2013 the Board of Directors amended the vesting requirements for the 174,000 shares allocated to the Manager under the 2011 Equity Incentive Plan and the vesting requirements were lifted. The lifting of the vesting requirements was in relation to the acquisition of Scandic American Shipping Ltd. This resulted in $1.1 million being charged to General and Administrative expense in the first quarter of 2013. | |||||||||||||||||
As of December 31, 2014, unrecognized cost related to unvested shares aggregated $ 0.4 million, which will be recognized over a weighted period of 0.6 years. Of the 226,000 restricted shares under the Plan, 193,000 will be fully vested in February 2015. | |||||||||||||||||
The tables below summarize the Company’s restricted stock awards as of December 31, 2014: | |||||||||||||||||
Restricted shares -Employees | Weighted-average grant-date fair value | Restricted shares | Weighted-average grant-date fair value | ||||||||||||||
- Employees | - Non-employees | - Non-employees | |||||||||||||||
Non-vested at January 1, 2014 | 163,000 | $ | 23.88 | 40,000 | $ | 24.84 | |||||||||||
Granted during the year | - | - | 33,000 | 9.84 | |||||||||||||
Vested during the year | - | - | - | - | |||||||||||||
Forfeited during the year | (10,000 | ) | - | - | - | ||||||||||||
Non-vested at December 31, 2014 | 153,000 | $ | 23.88 | 73,000 | $ | 18.06 | |||||||||||
The tables below summarize the Company’s restricted stock awards as of December 31, 2013: | |||||||||||||||||
Restricted shares -Employees | Weighted-average grant-date fair value | Restricted shares | Weighted-average grant-date fair value | ||||||||||||||
- Employees | - Non-employees | - Non-employees | |||||||||||||||
Non-vested at January 1, 2013 | 163,000 | $ | 23.88 | 228,500 | $ | 22.06 | |||||||||||
Granted during the year | - | - | - | - | |||||||||||||
Vested during the year | - | - | (174,000 | ) | - | ||||||||||||
Forfeited during the year | - | - | (14,500 | ) | - | ||||||||||||
Non-vested at December 31, 2013 | 163,000 | $ | 23.88 | 40,000 | $ | 24.84 | |||||||||||
The total fair value of the shares vested in 2013 was $1.7 million. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |
Dec. 31, 2014 | ||
LONG-TERM DEBT [Abstract] | ||
LONG-TERM DEBT | 11 | LONG-TERM DEBT |
2012 Credit Facility: | ||
On October 26, 2012, the Company entered into a $430 million revolving credit facility with a syndicate of lenders in order to refinance its existing credit facility, fund future vessel acquisitions and for general corporate purposes (the “2012 Credit Facility”). Amounts borrowed under the 2012 Credit Facility bear interest at an annual rate equal to LIBOR plus a margin and the Company pays a commitment fee, which is a percentage of the applicable margin, on any undrawn amounts. The 2012 Credit Facility matures in October 2017. | ||
Borrowings under the 2012 Credit Facility are secured by first priority mortgages over the Company’s vessels and assignments of earnings and insurance. Under the 2012 Credit Facility, the Company is subject to certain covenants requiring among other things, the maintenance of (i) a minimum amount of equity; (ii) a minimum equity ratio; (iii) a minimum level of liquidity; and (iv) positive working capital. The 2012 Credit Facility also includes customary events of default including non-payment, breach of covenants, insolvency, cross default and material adverse change. The Company is permitted to pay dividends in accordance with its dividend policy as long as it is not in default under the 2012 Credit Facility. The finance costs of $6.1 million incurred in connection with the refinancing of the 2012 Credit Facility has been deferred and amortized over the term of the 2012 Credit Facility on a straight-line basis, which do not deviate from an effective interest method in any material way. | ||
2005 Credit Facility: | ||
The Company entered into a $300 million revolving credit facility in September 2005, which is referred to as the 2005 Credit Facility. During 2006, the Company increased the 2005 Credit Facility from $300 million to $500 million, and in March 2008 the term was extended from September 2010 to September 2012. All other terms remained unchanged. The 2005 Credit Facility provided funding for future vessel acquisitions and general corporate purposes. The 2005 Credit Facility was not subject to reduction by the lenders and there was no repayment obligation of the principal during the five year term. Amounts borrowed under the 2005 Credit Facility bore interest at an annual rate equal to LIBOR plus a margin, and the Company paid a commitment fee, calculated as a percentage of the applicable margin, on any undrawn amounts. The 2005 Credit Facility was repaid to the lenders on November 14, 2012. | ||
Total commitment fees and interest paid, for the 2012 Credit Facility, for the year ended December 31, 2014 and 2013 and the 2005 and 2012 Credit Facility, for the year ended December 31, 2012 were $11.7 million, $9.7 million and $2.9 million, respectively. The undrawn amount of 2012 Credit Facility as of December 31, 2014 and December 31, 2013 was $180.0 million. The Company was in compliance with its loan covenants as of December 31, 2014. |
INTEREST_EXPENSE
INTEREST EXPENSE | 12 Months Ended | |
Dec. 31, 2014 | ||
INTEREST EXPENSE [Abstract] | ||
INTEREST EXPENSE | 12 | INTEREST EXPENSE |
Interest expense consists of interest expense on the long-term debt, the commitment fee and amortization of the deferred financing costs related to the 2012 Credit Facility that the Company entered into on October 26, 2012 and to the 2005 Credit Facility that was repaid to the lender in November 2012. Amounts borrowed bear interest at an annual rate equal to LIBOR plus a margin and the Company pays a commitment fee, which is a percentage of the applicable margin, on any undrawn amounts. | ||
The financing costs of $6.1 million incurred related to the 2012 Credit Facility that the Company entered into on October 26, 2012 are deferred and amortized over the term of the 2012 Credit Facility on a straight-line basis. The amortization of deferred financing costs for the years ended December 31, 2014, 2013 and 2012 was $1.2 million, $1.2 million and $1.4 million, respectively. Total deferred financing costs were $3.3 million and $4.6 million at December 31, 2014 and 2013, respectively. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED LIABILITIES [Abstract] | |||||||||
ACCRUED LIABILITIES | 13 | ACCRUED LIABILITIES | |||||||
All figures in USD ‘000 | 2014 | 2013 | |||||||
Accrued Interest | 1,452 | 1,600 | |||||||
Accrued Expenses | 4,481 | 4,967 | |||||||
Deferred revenue | 2,654 | - | |||||||
Total as of December 31, | 8,587 | 6,567 |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EARNINGS (LOSS) PER SHARE [Abstract] | |||||||||||||
EARNINGS (LOSS) PER SHARE | 14 | EARNINGS (LOSS) PER SHARE | |||||||||||
Basic earnings per share (“EPS”) are computed by dividing net income/(loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. | |||||||||||||
For the year ended December 31, 2014, 2013 and 2012, the Company had a net loss, thus any effect of common stock equivalents outstanding would be antidilutive. For the years ended December 31, 2014 and 2013, the Company had 400,000 restricted shares outstanding, which were included in the total common shares issued and outstanding as at December 31, 2014 and 2013, respectively. | |||||||||||||
All figures in USD | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net Loss | (12,808,441 | ) | (105,417,590 | ) | (73,191,830 | ) | |||||||
Denominator: | |||||||||||||
Basic - Weighted Average Common Shares Outstanding | 85,401,179 | 64,101,923 | 52,547,623 | ||||||||||
Dilutive – Weighted-Average Common Shares Outstanding | 85,401,179 | 64,101,923 | 52,547,623 | ||||||||||
Loss per Common Share: | |||||||||||||
Basic | (0.15 | ) | (1.64 | ) | (1.39 | ) | |||||||
Diluted | (0.15 | ) | (1.64 | ) | (1.39 | ) |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||
SHAREHOLDERS' EQUITY | 15 | SHAREHOLDERS’ EQUITY | |||||||||||
Authorized, issued and outstanding common shares roll-forward is as follows: | |||||||||||||
All figures in USD ´000, except number of shares | Authorized Shares | Issued and Out- | Common Stock | ||||||||||
standing Shares | |||||||||||||
Balance as of January 1, 2012 | 90,000,000 | 47,303,394 | 473 | ||||||||||
Common Shares Issued | 5,500,000 | 55 | |||||||||||
in Follow-on Offering | |||||||||||||
Compensation – Restricted Shares | 112,245 | 1 | |||||||||||
Balance as of December 31, 2012 | 90,000,000 | 52,915,639 | 529 | ||||||||||
Common Shares Issued | 20,556,250 | 206 | |||||||||||
in Follow-on Offering | |||||||||||||
Shares issued in connection with the Scandic acquisition | 1,910,112 | 19 | |||||||||||
Balance as of December 31, 2013 | 90,000,000 | 75,382,001 | 754 | ||||||||||
Common Shares Issued in Follow-on Offering | 13,800,000 | 138 | |||||||||||
Increase in Authorized Shares | 90,000,000 | ||||||||||||
Balance as of December 31, 2014 | 180,000,000 | 89,182,001 | 892 | ||||||||||
Of the shares issued and outstanding a total of 2,600,663, 2,600,663 and 690,551 were restricted shares issued to the Manager under the former management agreement, and 73,000, 40,000 and 217,500 shares were restricted to members of the Board and employees as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
On June 17, 2014, at its Annual General Meeting (“AGM”) held in Bermuda, the Company increased authorized share capital from 90,000,000 common shares to 180,000,000. | |||||||||||||
In April 2014, the Company completed an underwritten public offering of 13,800,000 common shares which increased its equity by $113.4 million. | |||||||||||||
In April and November 2013, the Company completed an underwritten public offering of 11,212,500 and 9,343,750 common shares which strengthened the equity by $102.2 million and $70.9 million, respectively. | |||||||||||||
Compensation for Scandic was partly paid in shares. The Company transferred 1,910,112 shares which are subject to a one-year lock up. For further background and details related to the acquisition please see Note 3 and 9. | |||||||||||||
In January 2012, the Company completed an underwritten public offering of 5,500,000 common shares which increased the equity by $75.6 million. | |||||||||||||
Additional Paid in Capital | |||||||||||||
Included in Additional Paid in Capital is the Company’s Share Premium Fund as defined by Bermuda law. The Share Premium Fund cannot be distributed without complying with certain legal procedures designed to protect the creditors of the Company, including public notice to its creditors and a subsequent period for creditor notice of concern, regarding the Company’s intention to make such funds available for distribution following shareholder approval. The Share Premium Fund was $77.4 million and $172.4 million as of December 31, 2014 and 2013 respectively. Credits and Charges to Additional Paid in Capital were a result of the accounting for the Company’s share based compensation programs and issuance of shares in relation to the acquisition of Scandic. | |||||||||||||
On June 17, 2014, at the Company’s Annual General Meeting, shareholders voted to reduce the Share Premium Fund by the amount of $208.2 million. The legal procedures related to this reduction were finalized in July 2014, upon which the amount became eligible for distribution. | |||||||||||||
Contributed Surplus Account | |||||||||||||
The Company’s Contributed Surplus Account as defined by Bermuda law, consists of amounts previously recorded as share premium, transferred to Contributed Surplus Account when resolutions are adopted by the Company’s shareholders to make Share Premium Fund distributable or available for other purposes. As indicated by the laws governing the Company, the Contributed Surplus Account can be used for dividend distribution and to cover accumulated losses from its operations. | |||||||||||||
For 2014, the Company had a net loss of $12.8 million. As such, all dividend distributions were charge to the Company’s Contributed Surplus Account. The accumulated deficit at year end of 2013 was charged against the Company’s Contributed Surplus Account in 2014. The accumulated deficit at the end of 2014 is to be charged against the Company’s Contributed Surplus Account in 2015. | |||||||||||||
Stockholders Rights Plan | |||||||||||||
In 2007, the Board of Directors adopted a stockholders rights agreement and declared a dividend of one preferred stock purchase right to purchase one one-thousandth of a share of the Company’s Series A Participating Preferred Stock for each outstanding share of its common stock, par value $0.01 per share. The dividend was payable on February 27, 2007 to stockholders of record on that date. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock at an exercise price of $115, subject to adjustment. The Company can redeem the rights at any time prior to a public announcement that a person has acquired ownership of 15% or more of the Company’s common stock. | |||||||||||||
This stockholders rights plan was designed to enable us to protect stockholder interests in the event that an unsolicited attempt is made for a business combination with, or a takeover of, the Company. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |
Dec. 31, 2014 | ||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 16 | COMMITMENTS AND CONTINGENCIES |
Nordic Harrier | ||
The arbitration hearings involving the Suezmax vessel Gulf Scandic (now named Nordic Harrier) have finished. Gulf Navigation Holding PJSC (GulfNav) was the other party in the arbitration. The case relates to the 6 year bareboat charter with GulfNav of the Gulf Scandic covering the period 2004 to 2010. | ||
When the vessel was redelivered to the Company by the charterer in October 2010, it was in very poor technical condition. The vessel had not been operated according to sound maintenance practices by the charterer. The Company had the vessel repaired in the autumn of 2010/spring 2011, and made a claim against GulfNav for costs incurred. A London arbitration panel ruled in favor of NAT at the end of January 2014 and awarded the Company $10.2 million plus direct costs and calculated interest. Any amounts received will be recorded upon receipt, no amounts were received in 2014. | ||
Legal Proceedings and Claims | ||
The Company may become a party to various legal proceedings generally incidental to its business and is subject to a variety of environmental and pollution control laws and regulations. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings. Although the ultimate disposition of legal proceedings cannot be predicted with certainty, it is the opinion of the Company’s management that the outcome of any claim which might be pending or threatened, either individually or on a combined basis, will not have a materially adverse effect on the financial position of the Company, but could materially affect the Company’s results of operations in a given year. | ||
No claims have been filed against the Company for the fiscal years 2014, 2013 or 2012, and the Company has not been a party to any legal proceedings for the years ended December 31, 2014, 2013 and 2012, except for information set forth above. |
FINANCIAL_INSTRUMENTS_AND_OTHE
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |||||||||||||||||||||
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | 17 | FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES | |||||||||||||||||||
The Company did not hold any material derivative instruments during 2012. In 2013 the Company received warrants as compensation for its contribution in coordinating the establishment of NAO. The warrants hold no value, and have low associated risk. For further background and details related to the warrants please see Note 9. | |||||||||||||||||||||
The majority of NAT and its subsidiaries’ transactions, assets and liabilities are denominated in United States dollars, the functional currency of the Company. There is no significant risk that currency fluctuations will have a negative effect on the value of the Company’s cash flows. | |||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments and other financial assets. | |||||||||||||||||||||
- | The carrying value of cash and cash equivalents and marketable securities, is a reasonable estimate of fair value. | ||||||||||||||||||||
- | The investment in NAO, which is listed on the NYSE, is an available-for-sale security. Accordingly the carrying value of the investment is measured at fair value in the statement of financial position. | ||||||||||||||||||||
- | The estimated fair value for the long-term debt is considered to be equal to the carrying values since it bears variable interest rates. | ||||||||||||||||||||
- | The estimated fair value of the warrants in NAO was calculated based on a Black-Scholes model using comparative market data for other companies in the Platform Supply Vessel, or “PSV”, segment to estimate volatility, and by assigning an estimated probability for achieving the exercise levels presented in Note 9. | ||||||||||||||||||||
The Company categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value for those assets that are recorded on the balance sheet at fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: | |||||||||||||||||||||
Level 1. Observable inputs such as quoted prices in active markets. | |||||||||||||||||||||
Level 2. | Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||||||||||||||
Level 3. | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||||||
The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
Fair Value Hierarchy | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||
All figures in USD ‘000 | Level | Fair | Carrying | Fair | Carrying | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Cash and Cash Equivalents | 1 | 100,736 | 100,736 | 65,675 | 65,675 | ||||||||||||||||
Investment in NAO | 1 | 55,223 | 55,223 | - | - | ||||||||||||||||
Warrants in NAO | 3 | - | - | 915 | 915 | ||||||||||||||||
Credit Facility | (250,000 | ) | (250,000 | ) | (250,000 | ) | (250,000 | ) | |||||||||||||
The valuation of vessels measured at fair value on a non-recurring basis as of the valuation date: | |||||||||||||||||||||
A long-lived asset held and used with a carrying amount of $41.4 million was written down to its fair value of $29.4 million as determined based on estimated discounted operating cashflow, using the income approach, resulting in an impairment charge of $12.0 million, which was included in the statement of operations for December 31, 2012. The input factors to the discounted cash flow model are similar to those used for the undiscounted cash flow when testing for impairment (see Note 2) and are significantly based on unobservable inputs (Level 3) assessed from the perspective of a willing market participant. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
On January 9, 2015 the Company declared a cash dividend of $0.14 per share in respect of the results for the fourth quarter of 2014, with a payment date of February 9, 2015. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Accounting | Basis of Accounting: These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Use of Estimates | Use of Estimates: Preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The effects of changes in accounting estimates are accounted for in the same period in which the estimates are changed. |
Foreign Currency Translation | Foreign Currency Translation: The functional currency of NAT is the United States (“U.S.”) dollar as all revenues are received in U.S. dollars and the majority of the expenditures are incurred and paid in U.S. dollars. NAT’s reporting currency is also the U.S. dollar. Transactions in foreign currencies during the year are translated into U.S dollars at the rates of exchange in effect at the date of the transaction. The subsidiary of Orion Tankers Ltd, Orion Tankers AS, and the European branch of Scandic American Shipping Ltd, both have Norwegian Kroners as their functional currency. The financial statements of these entities are translated as part of the consolidation of the Group. |
Revenue and Expense Recognition | Revenue and Expense Recognition: Revenues and expenses are recognized on the accruals basis. Revenues are generated from spot charters. |
Voyage revenues and expenses are recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. The impact of recognizing voyage expenses ratably over the length of each voyage is not materially different on a quarterly and annual basis from a method of recognizing such costs as incurred. Probable losses on voyages are provided for in full at the time such losses can be estimated. Based on the terms of the customer agreement, a voyage is deemed to commence upon the completion of discharge of the vessel’s previous cargo and is deemed to end upon the completion of discharge of the current cargo. However, the Company does not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. | |
Spot Charters: Revenues and voyage expenses of the vessels operating on spot charters are tankers typically chartered for a single voyage which may last up to several weeks. Revenue is generated from freight billing, as the Company is responsible for paying voyage expenses and the charterer is responsible for any delay at the loading or discharging ports. When the Company’s tankers are operating on spot charters the vessels are traded fully at the risk and reward of the Company. For vessels operating in the spot market other than through the pool (described below under “Cooperative arrangement”), the vessels will be operated by the pool manager. Under this type of employment, the vessel’s revenues are not included in the profit sharing of the participating vessels in the pool. The Company considers it appropriate to present the gross amount earned revenue from the spot charter, showing voyage expenses related to the voyage separately in the statements of operations. | |
Cooperative Arrangement: Revenues and voyage expenses of the vessels operating in pool arrangements, through cooperative arrangements, are combined and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to pool participants according to an agreed formula. Formulas used to allocate net revenues vary among different cooperative arrangements, but generally, revenues are allocated to participants on the basis of the number of days a vessel operates with weighting adjustments made to reflect each vessels’ differing capacities and performance capabilities. The same revenue and expense principles stated above are applied in determining the pool’s net pool revenues. The manager of the cooperative agreements is responsible for collecting voyage revenue, paying voyage expenses and distributing net pool revenues to the owners of the participating vessels. | |
Until November 5, 2012 the Company’s net voyage revenues were generated from cooperative agreements with other vessels that are not owned by the Company. The Company considers it appropriate to record the net voyage revenues, in which the Company is not regarded as the principal of its vessels’ activities based on the net method. The Company accounts for the net revenues allocated by these cooperative agreements as “Voyage Revenue” in its statements of operations. | |
Orion was established as equally owned by the Company and Frontline Ltd. (“Frontline”). On November 5, 2012, Frontline completed the withdrawal of its nine Suezmax tankers from the cooperative agreements, following which the Orion Tankers pool consists of 20 Suezmax vessels, all owned by the Company. The Company considers it appropriate to present the gross amount of earned revenue from the cooperative agreements from November 5, 2012, showing voyage expenses related to the voyage separately in the statements of operations. | |
When in the cooperative arrangements described above a vessel which did not temporarily comply with the pool requirements, the vessel will continue to be operated in the spot market by the pool manager, as described above under “Spot Charters.” | |
Vessel Operating Expenses | Vessel Operating Expenses: Vessel operating expenses include crewing, repair and maintenance, insurance, stores, lubricants, management fee, communication expenses and tonnage tax. These expenses are recognized when incurred. |
Consolidation | Consolidation: Entities in which NAT has controlling financial interest are consolidated in accordance with Accounting Standard Codification (“ASC”) Topic 810, “Consolidation”. Subsidiaries are consolidated from the date on which control is obtained. The subsidiaries’ accounting policies are in conformity with U.S. GAAP. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of highly liquid investments such as time deposits with original maturities of three months or less. |
Marketable Securities | Marketable Securities: Marketable equity securities held by the Company are considered to be available-for-sale securities and as such are carried at fair value. Any resulting unrealized gains and losses, are recorded as a separate component of other comprehensive income in equity unless the securities are considered to be other than temporarily impaired, in which case unrealized losses are recorded in the statement of operations. Dividends received on available-for-sale securities are recognized in the statement of operations as other financial income. |
Accounts Receivable | Accounts Receivable: Accounts and other receivables are presented net of allowances for doubtful balances. If amounts become uncollectable, they are charged against income when that determination is made. |
Inventories | Inventories: Inventories, which are comprised of bunker fuel and lubrication oil, are stated at the lower of cost or market. Cost is determined on a first-in, first-out (“FIFO”) basis. |
Vessels, Net | Vessels, Net: Vessels are stated at their historical cost, which consists of the contracted purchase price and any direct expenses incurred upon acquisition (including improvements, on site supervision expenses incurred during the construction period, commissions paid, delivery expenses and other expenditures to prepare the vessel for its initial voyage) less accumulated depreciation. Financing costs incurred during the construction period of the vessels are also capitalized and included in vessels’ cost based on the weighted-average method. Certain subsequent expenditures for conversions and major improvements are also capitalized if it is determined that they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessel. Depreciation is calculated based on cost less estimated residual value, and is provided over the estimated useful life of the related assets using the straight-line method. The estimated useful life of a vessel is 25 years from the date the vessel is delivered from the shipyard. Repairs and maintenance are expensed as incurred. |
Impairment of Vessels | Impairment of Vessels: |
The Company reviews for impairment long-lived assets held and used whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In this respect, the Company reviews its assets for impairment on an asset by asset basis. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for impairment loss. The impairment loss is determined by the difference between the carrying amount of the asset and fair value (calculated based on estimated discounted operating cashflow). In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels’ future performance, with the significant assumptions being related to charter rates, fleet utilization, operating expenses, capital expenditures, residual value and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. The estimated net operating cash flows are determined by considering an estimated daily time charter equivalent for the remaining operating days. The Company estimates the daily time charter equivalent for the remaining operating days based on the most recent fifteen year historical average for similar vessels and utilizing available market data for spot market rates over the remaining estimated life of the vessel, assumed to be 25 years from the delivery of the vessel from the shipyard, net of brokerage commissions, expected outflows for vessels’ maintenance and vessel operating expenses (including planned drydocking expenditures). The salvage value used in the impairment test is estimated to be $9.7 million per vessel. If the Company’s estimate of undiscounted future cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair value if the fair value is lower than the vessel’s carrying value. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are subjective. There can be no assurance as to how long charter rates and vessel values will remain at their currently low levels or whether they will improve by any significant degree. In 2012, the Company recognized impairment charges on one vessel using an individual approach. There was no impairment on vessels in 2014 and 2013. | |
Drydocking | Drydocking: The Company’s vessels are required to be drydocked approximately every 30 to 60 months. The Company capitalizes a substantial portion of the costs incurred during drydocking and amortizes those costs on a straight-line basis from the completion of a drydocking or intermediate survey to the estimated completion of the next drydocking. Consistent with prior periods, drydocking costs include a variety of costs incurred while vessels are placed within drydock, including expenses related to the dock preparation and port expenses at the drydock shipyard, general shipyard expenses, expenses related to hull, external surfaces and decks, expenses related to machinery and engines of the vessel, as well as expenses related to the testing and correction of findings related to safety equipment on board. The Company includes in capitalized drydocking those costs incurred as part of the drydock to meet classification and regulatory requirements. The Company expenses costs related to routine repairs and maintenance performed during drydocking, and for annual class survey costs. Ballast tank improvements are capitalized and amortized on a straight-line basis over a period of eight years. The capitalized and unamortized drydocking costs are included in the book value of the vessels. Amortization expense of the drydocking costs is included in depreciation expense. |
Investments in Equity Method Investees | Investments in Equity Method Investees: Investments in other entities where the Company has a “significant influence” in accordance with U.S. GAAP are accounted for using the equity method of accounting. Under the equity method of accounting, the investment is stated at initial cost and is adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investment in equity method investees for impairment when events or circumstances indicate that the carrying value of the investment may have experienced an other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in net income (loss). |
Investments in securities | Investment in Securities: Investment in securities in other entities where the Company does not have a “significant influence” is accounted for as available for sale when the securities have readily determinable fair values. Such investments are adjusted to fair value each reporting period, with the unrealized gain or loss being accounted in “Other Comprehensive Income” in the Balance Sheet. Gains and losses are recorded in the net income (loss) when securities are sold. Unrealized loss which is considered as an other than temporary decline is recorded in net income (loss). |
Business combinations | Business combinations: The Company uses the acquisition method of accounting, which requires an acquirer in a business combination to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at their fair values at the acquisition date. The costs of the acquisition and any related restructuring costs are to be recognized separately in the Consolidated Statements of Operations. The acquired company's operating results are included in the Company's consolidated financial statements starting on the date of acquisition. |
The purchase price is equivalent to the fair value of the consideration transferred and liabilities incurred. Tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition are recorded at the acquisition date fair value. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed. | |
Goodwill | Goodwill: Goodwill is not amortized, but reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Company may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Company may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Company uses a discounted cash flow model to determine the fair value of the reporting unit, unless there is a readily determinable fair market value. |
Deferred Compensation Liability | Deferred Compensation Liability: The Company has two individual deferred compensation agreements with the Company’s CEO and CFO & EVP. The deferred compensation liabilities are denominated in Norwegian currency. The liabilities are accounted for on an accrual basis using actuarial calculations. Any currency translation adjustments as well as actuarial gains and losses are recognized in general and administration expenses as incurred. |
Defined Benefit Plan | Defined Benefit Plan: |
The employees of the subsidiaries have defined benefit pension plans. The Company accrues the costs and related obligations associated with its defined benefit pension plans based on actuarial computations using the projected benefits obligation method and management’s best estimates of expected plan investment performance, salary escalation, and other relevant factors. For the purpose of calculating the expected return on plan assets, those assets are valued at fair value. The overfunded or underfunded status of the defined benefit pension plans are recognized as assets or liabilities in the consolidated balance sheet. The Company recognizes as a component of other comprehensive loss, the gains or losses that arise during a period but that are not recognized as part of net periodic benefit costs | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss): The Company follows the guidance in ASC Topic 220, “Comprehensive Income” which requires separate presentation of certain transactions that are recorded directly as components of shareholders’ equity. |
Segment Information | Segment Information: The Company has identified only one operating segment. The Company has only one type of vessel – Suezmax crude oil tankers. |
Geographical Segment | Geographical Segment: The Company does not provide a geographical analysis because the Company’s business is global in nature and the location of its vessels continually changes. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate carrying value because of the short-term nature of these instruments. For further information on fair value of financial instruments please see Note 17. |
Deferred Financing Costs | Deferred Financing Costs: Finance costs, including fees, commissions and legal expenses, which are recorded in the Balance Sheet are deferred and amortized on a straight-line basis over the term of the debt agreement. Using the straight line basis is not materially different than using the interest method Amortization of finance costs are included in “Interest Expense” in the Statement of Operations. |
Stock-Based Payments | Stock-Based Payments: |
Share-Based Compensation: The compensation costs for all of the Company’s stock-based compensation awards are based on the fair value method. As of December 31, 2014 the Company does not have any stock based compensation. | |
Restricted Shares to Employees and Non-Employees: The fair value of restricted shares is estimated based on the market price of the Company’s shares. The fair value of unvested restricted shares granted to employees is measured at grant date and the Company records the compensation expense for such awards over the requisite service period. The fair value of unvested restricted shares granted to non-employees is measured at fair value at each reporting date and the Company records the compensation expense for such awards over the period the service is rendered by the non-employee. | |
Restricted Shares to Manager: Restricted shares issued to the Manager are non-forfeitable and vest immediately. Accordingly, the compensation expense for each of the respective issuances was measured at fair value on the date the award was issued, or the grant date, and expensed immediately as performance was deemed to be complete. The fair value was determined using the Company’s stock price on the date of grant. | |
The agreement which gave the Manager the right to be issued restricted shares was terminated when the Manager was acquired in January 2013. | |
Income Taxes | Income Taxes: The Company is incorporated in Bermuda. Under current Bermuda law, the Company is not subject to corporate income taxes. |
The Group includes two wholly-owned subsidiaries in Norway which are subject to income tax in their jurisdictions at 28 % of their taxable profit. The income tax incurred in Norway for the year ended December 31, 2014 and 2013 was $47,000 and $65,000, respectively. | |
Concentrations | Concentrations: |
Fair value: The Company operates in the shipping industry which historically has been cyclical with corresponding volatility in profitability and vessel values. Vessel values are strongly influenced by charter rates which in turn are influenced by the level and pattern of global economic growth and the world-wide supply and demand for vessels. The spot market for tankers is highly competitive and charter rates are subject to significant fluctuations. Dependence on the spot market may result in lower utilization. Each of the aforementioned factors is an important consideration associated with the Company’s assessment of whether the carrying amounts of its own vessels are recoverable. | |
Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The fair value of the financial instrument approximates the net book value. The Company maintains its cash with financial institutions it believes are reputable. The terms of these deposits are on demand to minimize risk. The Company has not experienced any losses related to these cash deposits and believes it is not exposed to any significant credit risk. However, due to the current financial crisis the maximum credit risk the Company would be exposed to is a total loss of outstanding cash and cash equivalents and accounts receivable. See Note 4 for further information. | |
Accounts receivable, net, consists of uncollateralized receivables from international customers engaged in the international shipping industry. The Company routinely assesses the financial strength of its customers. Accounts receivable are presented net of allowances for doubtful accounts. If amounts become uncollectible, they will be charged to operations when that determination is made. For the years ended December 31, 2014 and 2013, the Company did not record an allowance for doubtful accounts. | |
Interest risk: The Company is exposed to interest rate risk for its debt borrowed under the Credit Facility. In certain situations, the Company may enter into financial instruments to reduce the risk associated with fluctuations in interest rates. The Company has no such outstanding derivatives at December 31, 2014 and 2013, and has not entered into any such arrangements during 2014, 2013 or 2012. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Costumers, which provides new authoritative guidance on the methods of revenue recognition and related disclosure requirements. The ASU will be effective for the first interim period beginning after December 15, 2016 and early adoption is not permitted. The Company is in the process of evaluating the impact of this standard, if any, on its consolidated statements and related disclosures. | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides new authoritative guidance regarding management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is not planning to early adopt, and the adoption is not expected to have material impact on the consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which provides new authoritative guidance regarding whether reporting entities should consolidate certain legal entities. The standard is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity also may apply the amendments retrospectively. The Company is not planning to early adopt, and the adoption is not expected to have material impact on the consolidated financial statements |
NATURE_OF_BUSINESS_Tables
NATURE OF BUSINESS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
NATURE OF BUSINESS [Abstract] | ||||||
Current Fleet | The Company’s current fleet consists of 24 Suezmax crude oil tankers, including two newbuildings, and all of its 22 vessels in operation are employed in the spot market. The Company has entered into preliminary contracts for the construction of two Suezmax vessels expected to be delivered in the third quarter 2016 and first quarter 2017. | |||||
Vessel | Yard | Built | Deadweight Tons | Delivered to NAT | ||
Nordic Harrier | Samsung | 1997 | 151,459 | Aug-97 | ||
Nordic Hawk | Samsung | 1997 | 151,475 | Oct-97 | ||
Nordic Hunter | Samsung | 1997 | 151,401 | Dec-97 | ||
Nordic Voyager | Dalian New | 1997 | 149,591 | Nov-04 | ||
Nordic Fighter | Hyundai | 1998 | 153,328 | Mar-05 | ||
Nordic Freedom | Daewoo | 2005 | 159,331 | Mar-05 | ||
Nordic Discovery | Hyundai | 1998 | 153,328 | Aug-05 | ||
Nordic Saturn | Daewoo | 1998 | 157,331 | Nov-05 | ||
Nordic Jupiter | Daewoo | 1998 | 157,411 | Apr-06 | ||
Nordic Moon | Samsung | 2002 | 160,305 | Nov-06 | ||
Nordic Apollo | Samsung | 2003 | 159,998 | Nov-06 | ||
Nordic Cosmos | Samsung | 2003 | 159,999 | Dec-06 | ||
Nordic Sprite | Samsung | 1999 | 147,188 | Feb-09 | ||
Nordic Grace | Hyundai | 2002 | 149,921 | Jul-09 | ||
Nordic Mistral | Hyundai | 2002 | 164,236 | Nov-09 | ||
Nordic Passat | Hyundai | 2002 | 164,274 | Mar-10 | ||
Nordic Vega | Bohai | 2010 | 163,940 | Dec-10 | ||
Nordic Breeze | Samsung | 2011 | 158,597 | Aug-11 | ||
Nordic Aurora | Samsung | 1999 | 147,262 | Sep-11 | ||
Nordic Zenith | Samsung | 2011 | 158,645 | Nov-11 | ||
Nordic Sprinter | Hyundai | 2005 | 159,089 | Jul-14 | ||
Nordic Skier | Hyundai | 2005 | 159,089 | Aug-14 | ||
Newbuild #1 | Sungdong | Aug-16 | ||||
Newbuild #2 | Sungdong | Jan-17 |
REVENUE_Tables
REVENUE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
REVENUE [Abstract] | |||||||||||||
Net method and gross method revenue | The table below provides the breakdown of revenues recorded as per the net method and the gross method. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Voyage Revenues | |||||||||||||
All figures in USD ‘000 | |||||||||||||
Net pool spot market earnings, cooperative arrangements | - | - | 77,287 | ||||||||||
Gross pool spot market earnings, Orion Tankers pool | - | - | 36,339 | ||||||||||
Gross spot market earnings, through spot charters | 351,049 | 243,657 | 17,056 | ||||||||||
Total Voyage Revenues | 351,049 | 243,657 | 130,682 |
GENERAL_AND_ADMINISTRATIVE_EXP1
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES [Abstract] | |||||||||||||
General and administrative expenses | 2014 | 2013 | 2012 | ||||||||||
All figures in USD ‘000 | |||||||||||||
Management fee to related party | - | - | 500 | ||||||||||
Directors and officers insurance | 86 | 80 | 74 | ||||||||||
Salaries and wages | 7,734 | 6,560 | 3,282 | ||||||||||
Audit, legal and consultants | 1,431 | 5,575 | 1,007 | ||||||||||
Administrative services provided by related party | - | - | 3,930 | ||||||||||
Other fees and expenses | 4,076 | 4,213 | 1,718 | ||||||||||
Compensation – Restricted shares to Manager | - | - | 1,540 | ||||||||||
Share-based compensation | 1,096 | 2,093 | 1,258 | ||||||||||
Deferred compensation plan | 440 | 1,033 | 1,391 | ||||||||||
Total for year ended December 31, | 14,863 | 19,555 | 14,700 |
VESSELS_NET_Tables
VESSELS, NET (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
VESSELS, NET [Abstract] | ||||
Vessels, net | ||||
Vessels, net, consist of the carrying value of 22 vessels and 20 vessels for the year ended December 31, 2014 and December 31, 2013, respectively. Vessels, net include drydocking costs. | ||||
All Figures in USD ‘000 | Vessels | Drydocking | Total | |
Carrying Value December 31, 2013 | 872,846 | 38,583 | 911,429 | |
Accumulated Depreciation December 31, 2013 | 460,422 | 27,063 | 487,485 | |
Depreciation Expense 2013 | 62,781 | 11,241 | 74,022 | |
Carrying Value December 31, 2014 | 882,221 | 27,771 | 909,992 | |
Accumulated Depreciation December 31, 2014 | 524,651 | 42,994 | 567,645 | |
Depreciation Expense 2014 | 64,229 | 15,931 | 80,160 | |
Acquisition of vessels 2014 | 73,604 | 300 | 73,904 |
OTHER_NONCURRENT_ASSETS_Tables
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER NON-CURRENT ASSETS [Abstract] | |||||||||
Other Non-Current Assets | 2014 | 2013 | |||||||
All figures in USD ‘000 | |||||||||
Fixture, Furniture and Equipment | 1,099 | 1,129 | |||||||
Warrants | - | 915 | |||||||
Deferred Finance Costs | 2,232 | 3,460 | |||||||
Long term deposit | 5,000 | 5,000 | |||||||
Total as of December 31, | 8,331 | 10,504 |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
INVESTMENTS [Abstract] | |||||
Summary of the fair values of the assets and liabilities acquired | The following is a summary of the fair values of the assets and liabilities: | ||||
Amounts in $ million | Scandic | ||||
As of January 10, 2013 | |||||
ASSETS | |||||
Cash and cash equivalents | 0.4 | ||||
Assets held for sale | 6.6 | ||||
Other current assets | 2.4 | ||||
Furniture, fixture and equipment | 1 | ||||
Other non-current assets | 0.2 | ||||
Total assets acquired | 10.6 | ||||
LIABILITIES | |||||
Accounts payable | 0.2 | ||||
Tax payable | 0.2 | ||||
Other current liabilities | 0.9 | ||||
Total liabilities assumed | 1.3 | ||||
Net assets acquired | 9.3 | ||||
Cash consideration | 8 | ||||
Common shares issued | 18.1 | ||||
Payable to seller | 7.2 | ||||
Total consideration | 33.3 | ||||
Net assets acquired | 9.3 | ||||
Difference | 24 | ||||
Settlement loss | 5 | ||||
Net Goodwill recognized | 19 |
SHAREBASED_COMPENSATION_PLAN_T
SHARE-BASED COMPENSATION PLAN (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SHARE-BASED COMPENSATION PLAN [Abstract] | |||||||||||||||||
Summary of company's restricted stock awards | The tables below summarize the Company’s restricted stock awards as of December 31, 2014: | ||||||||||||||||
Restricted shares -Employees | Weighted-average grant-date fair value | Restricted shares | Weighted-average grant-date fair value | ||||||||||||||
- Employees | - Non-employees | - Non-employees | |||||||||||||||
Non-vested at January 1, 2014 | 163,000 | $ | 23.88 | 40,000 | $ | 24.84 | |||||||||||
Granted during the year | - | - | 33,000 | 9.84 | |||||||||||||
Vested during the year | - | - | - | - | |||||||||||||
Forfeited during the year | (10,000 | ) | - | - | - | ||||||||||||
Non-vested at December 31, 2014 | 153,000 | $ | 23.88 | 73,000 | $ | 18.06 | |||||||||||
The tables below summarize the Company’s restricted stock awards as of December 31, 2013: | |||||||||||||||||
Restricted shares -Employees | Weighted-average grant-date fair value | Restricted shares | Weighted-average grant-date fair value | ||||||||||||||
- Employees | - Non-employees | - Non-employees | |||||||||||||||
Non-vested at January 1, 2013 | 163,000 | $ | 23.88 | 228,500 | $ | 22.06 | |||||||||||
Granted during the year | - | - | - | - | |||||||||||||
Vested during the year | - | - | (174,000 | ) | - | ||||||||||||
Forfeited during the year | - | - | (14,500 | ) | - | ||||||||||||
Non-vested at December 31, 2013 | 163,000 | $ | 23.88 | 40,000 | $ | 24.84 |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED LIABILITIES [Abstract] | |||||||||
Accrued liabilities | All figures in USD ‘000 | 2014 | 2013 | ||||||
Accrued Interest | 1,452 | 1,600 | |||||||
Accrued Expenses | 4,481 | 4,967 | |||||||
Deferred revenue | 2,654 | - | |||||||
Total as of December 31, | 8,587 | 6,567 |
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EARNINGS (LOSS) PER SHARE [Abstract] | |||||||||||||
Basic and diluted earnings per share | For the year ended December 31, 2014, 2013 and 2012, the Company had a net loss, thus any effect of common stock equivalents outstanding would be antidilutive. For the years ended December 31, 2014 and 2013, the Company had 400,000 restricted shares outstanding, which were included in the total common shares issued and outstanding as at December 31, 2014 and 2013, respectively. | ||||||||||||
All figures in USD | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net Loss | (12,808,441 | ) | (105,417,590 | ) | (73,191,830 | ) | |||||||
Denominator: | |||||||||||||
Basic - Weighted Average Common Shares Outstanding | 85,401,179 | 64,101,923 | 52,547,623 | ||||||||||
Dilutive – Weighted-Average Common Shares Outstanding | 85,401,179 | 64,101,923 | 52,547,623 | ||||||||||
Loss per Common Share: | |||||||||||||
Basic | (0.15 | ) | (1.64 | ) | (1.39 | ) | |||||||
Diluted | (0.15 | ) | (1.64 | ) | (1.39 | ) |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||
Authorized, issued and outstanding common shares roll-forward | Authorized, issued and outstanding common shares roll-forward is as follows: | ||||||||||||
All figures in USD ´000, except number of shares | Authorized Shares | Issued and Out- | Common Stock | ||||||||||
standing Shares | |||||||||||||
Balance as of January 1, 2012 | 90,000,000 | 47,303,394 | 473 | ||||||||||
Common Shares Issued | 5,500,000 | 55 | |||||||||||
in Follow-on Offering | |||||||||||||
Compensation – Restricted Shares | 112,245 | 1 | |||||||||||
Balance as of December 31, 2012 | 90,000,000 | 52,915,639 | 529 | ||||||||||
Common Shares Issued | 20,556,250 | 206 | |||||||||||
in Follow-on Offering | |||||||||||||
Shares issued in connection with the Scandic acquisition | 1,910,112 | 19 | |||||||||||
Balance as of December 31, 2013 | 90,000,000 | 75,382,001 | 754 | ||||||||||
Common Shares Issued in Follow-on Offering | 13,800,000 | 138 | |||||||||||
Increase in Authorized Shares | 90,000,000 | ||||||||||||
Balance as of December 31, 2014 | 180,000,000 | 89,182,001 | 892 |
FINANCIAL_INSTRUMENTS_AND_OTHE1
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES [Abstract] | |||||||||||||||||||||
Carrying value of estimated fair value of financial instruments | The carrying value and estimated fair value of the Company`s financial instruments at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
Fair Value Hierarchy | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||
All figures in USD ‘000 | Level | Fair | Carrying | Fair | Carrying | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Cash and Cash Equivalents | 1 | 100,736 | 100,736 | 65,675 | 65,675 | ||||||||||||||||
Investment in NAO | 1 | 55,223 | 55,223 | - | - | ||||||||||||||||
Warrants in NAO | 3 | - | - | 915 | 915 | ||||||||||||||||
Credit Facility | (250,000 | ) | (250,000 | ) | (250,000 | ) | (250,000 | ) |
NATURE_OF_BUSINESS_Details
NATURE OF BUSINESS (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2004 | |
Vessel | Vessel | |
NATURE OF BUSINESS [Abstract] | ||
Total number of vessels | 24 | 3 |
Number of new buildings | 2 | |
Number of operating vessels | 22 | |
Number of vessels in construction | 2 | |
Average approximate deadweight tons per vessel (in deadweight tons) | 156,000 | |
Nordic Harrier [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 151,459 | |
Nordic Hawk [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 151,475 | |
Nordic Hunter [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 151,401 | |
Nordic Voyager [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 149,591 | |
Nordic Fighter [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 153,328 | |
Nordic Freedom [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 159,331 | |
Nordic Discovery [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 153,328 | |
Nordic Saturn [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 157,331 | |
Nordic Jupiter [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 157,411 | |
Nordic Moon [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 160,305 | |
Nordic Apollo [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 159,998 | |
Nordic Cosmos [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 159,999 | |
Nordic Sprite [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 147,188 | |
Nordic Grace [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 149,921 | |
Nordic Mistral [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 164,236 | |
Nordic Passat [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 164,274 | |
Nordic Vega [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 163,940 | |
Nordic Breeze [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 158,597 | |
Nordic Aurora [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 147,262 | |
Nordic Zenith [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 158,645 | |
Nordic Sprinter [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 159,089 | |
Nordic Skier [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 159,089 | |
Newbuild #1 [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 0 | |
Newbuild #2 [Member] | ||
Schedule of Vessels [Line Items] | ||
Deadweight tons | 0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsidiary | Tanker | ||
Agreement | |||
Vessel | |||
Segment | |||
Orion Tankers Pool [Abstract] | |||
Number of tankers withdrawn from pool | 9 | ||
Cash and Cash Equivalents [Abstract] | |||
Original maturities of deposits classified as cash and cash equivalents | 3 months | ||
Vessels, Net [Abstract] | |||
Number of types of vessel | 1 | ||
Historical and Average Spot Market Rate | 15 years | ||
Estimate useful life of vessel | 25 years | ||
Impairment on vessels | $0 | $0 | $12,030,000 |
Impairment Of Long-Lived Assets [Abstract] | |||
Salvage value of the vessel | 9,700,000 | ||
Drydock [Abstract] | |||
Period when vessels are required to be drydocked, minimum | 30 months | ||
Period when vessels are required to be drydocked, maximum | 60 months | ||
Deferred Compensation Liability [Abstract] | |||
Number of individual deferred compensation agreements | 2 | ||
Segment Information [Abstract] | |||
Number of operating segment | 1 | ||
Income Taxes [Abstract] | |||
Number of wholly owned subsidiaries | 2 | ||
Income tax expense | 47,000 | 86,000 | 0 |
Credit Risk [Abstract] | |||
Allowance for doubtful accounts | 0 | 0 | |
Interest Risk [Abstract] | |||
Derivatives outstanding | 0 | 0 | |
Geographical Segment [Abstract] | |||
Total number of vessels | 20 | ||
Norway [Member] | |||
Income Taxes [Abstract] | |||
Income tax rate for wholly-owned subsidiaries in Norway (in hundredths) | 28.00% | ||
Income tax expense | $47,000 | $65,000 | |
Ballast Tank [Member] | |||
Vessels, Net [Abstract] | |||
Improvements amortized over a period | 8 years |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 10, 2013 | Jan. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tanker | Person | Tanker | |||||
Related Party Transaction [Line Items] | |||||||
Costs and expenses, related party | $0 | $0 | $3,930,000 | ||||
Number of tankers withdrawn from pool | 9 | ||||||
Private equity placement issued amount | 113,433,000 | 172,611,000 | 75,582,000 | ||||
Investment in Nordic American Offshore Ltd | 55,223,000 | 64,128,000 | |||||
Dividend income recognized | 252,000 | 0 | 0 | ||||
Warrants received (in shares) | 833,333 | 833,333 | |||||
Warrants exercise price (n dollars per share) | $15 | $15 | |||||
Percentage of warrants vesting increments (in hundredths) | 20.00% | ||||||
Percentages of increase in volume weighted average price (in hundredths) | 10.00% | ||||||
Minimum business days required for exercise level of VWAP | 10 days | ||||||
VWAP minimum trading volume of exercise levels | 2,000,000 | 2,000,000 | |||||
Warrants vested (in shares) | 333,333 | ||||||
Minimum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of common shares increase (in hundredths) | 25.00% | 25.00% | |||||
Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of common shares increase (in hundredths) | 65.00% | 65.00% | |||||
Scandic American Shipping Ltd [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Manager's right to ownership of company's total outstanding shares (in hundredths) | 2.00% | ||||||
New amount of management fee due to decrease in the period | 150,000,000 | ||||||
Previous amount of management fee before decrease in the period | 500,000,000 | ||||||
Restricted shares authorized (in shares) | 400,000 | ||||||
Individuals in management and board members participating in incentive plan | 27 | 23 | |||||
Allocated restricted common shares subject to vesting (in shares) | 226,000 | ||||||
Restricted shares issued to the Manager (in shares) | 174,000 | ||||||
Share-based compensation expense | 1,100,000 | ||||||
Costs and expenses, related party | 3,900,000 | ||||||
Common Shares of treasury stock distributed (in shares) | 33,000 | ||||||
Treasury stock distributed among the persons | 14 | ||||||
Percentage of ownership (in hundredths) | 100.00% | 100.00% | |||||
Former Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accounts payable | 0 | 0 | |||||
Costs and expenses, related party | 100,000 | 100,000 | 100,000 | ||||
Immediate Family Member of the Chairman [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accounts payable | 0 | ||||||
Costs and expenses, related party | 100,000 | ||||||
Orion Tankers Pool [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of tankers withdrawn from pool | 9 | ||||||
Nordic American Offshore Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dividend income recognized | 200,000 | ||||||
Company acquired shares in market (In shares) | 488,216 | ||||||
Percentage of ownership (in hundredths) | 19.20% | ||||||
Warrants vested (in shares) | 333,333 | ||||||
Nordic American Offshore Limited [Member] | Private Placement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Private equity placement issued amount | 250,000,000 | ||||||
Investment in Nordic American Offshore Ltd | $65,000,000 | ||||||
Private equity placement participation (in hundredths) | 17.00% | 26.00% |
REVENUE_Details
REVENUE (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUE [Abstract] | |||
Net pool spot market earnings, cooperative arrangements | $0 | $0 | $77,287,000 |
Gross pool spot market earnings, Orion Tankers pool | 0 | 0 | 36,339,000 |
Gross spot market earnings, through spot charters | 351,049,000 | 243,657,000 | 17,056,000 |
Total Voyage Revenues | 351,049,000 | 243,657,000 | 130,682,000 |
Concentration Risk [Line Items] | |||
Accounts receivable | $16,400,000 | $18,800,000 | |
Voyage Revenues [Member] | Gemini Tankers LLC [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 2.00% | ||
Voyage Revenues [Member] | Orion Tankers Pool [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 98.00% | ||
Voyage Revenues [Member] | XX Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 40.00% | ||
Number of customers | 2 | ||
Voyage Revenues [Member] | Two Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 42.00% | ||
Number of customers | 2 | ||
Accounts Receivable [Member] | Three Charters [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 62.00% | ||
Number of charters | 3 | ||
Accounts Receivable [Member] | Four Charters [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 52.00% | ||
Number of charters | 4 |
GENERAL_AND_ADMINISTRATIVE_EXP2
GENERAL AND ADMINISTRATIVE EXPENSES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of general and administrative expenses [Line Items] | |||
Management fee to related party | $0 | $0 | $500 |
Directors and officers insurance | 86 | 80 | 74 |
Salaries and wages | 7,734 | 6,560 | 3,282 |
Audit, legal and consultants | 1,431 | 5,575 | 1,007 |
Administrative services provided by related party | 0 | 0 | 3,930 |
Other fees and expenses | 4,076 | 4,213 | 1,718 |
Compensation - Restricted shares to Manager | 0 | 0 | 1,540 |
Share-based compensation | 1,096 | 2,093 | 1,258 |
Deferred compensation plan | 440 | 1,033 | 1,391 |
Total, end of period | 14,863 | 19,555 | 14,700 |
Deferred group benefit plan liability | 12,914 | 12,154 | |
Scandic [Member] | |||
Schedule of general and administrative expenses [Line Items] | |||
Audit, legal and consultants | 2,500 | ||
Other fees and expenses | 1,100 | ||
Gulf Navigation Holding PSJ [Member] | |||
Schedule of general and administrative expenses [Line Items] | |||
Audit, legal and consultants | 1,000 | ||
Subsidiaries [Member] | |||
Schedule of general and administrative expenses [Line Items] | |||
Other fees and expenses | 2,200 | ||
Deferred compensation plan | 400 | 300 | |
Deferred group benefit plan liability | $400 | $100 |
DEFERRED_COMPENSATION_LIABILIT1
DEFERRED COMPENSATION LIABILITY (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Post Retirement Benefits With Individual Employees [Line Items] | |||
Total expense recognized | $782 | $832 | $1,391 |
Executive Vice President and Chief Financial Officer [Member] | |||
Post Retirement Benefits With Individual Employees [Line Items] | |||
Required service period | 20 years 6 months | ||
Maximum benefit as a percentage of salary (in hundredths) | 66.00% | ||
Retirement age | 67 years | ||
Imputed interest rate (in hundredths) | 2.30% | 4.00% | |
Chairman, President and CEO [Member] | |||
Post Retirement Benefits With Individual Employees [Line Items] | |||
Required service period | 14 years | ||
Maximum benefit as a percentage of salary (in hundredths) | 66.00% | ||
Retirement age | 70 years | ||
Imputed interest rate (in hundredths) | 2.30% | 4.00% |
VESSELS_NET_Details
VESSELS, NET (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Vessel | Vessel | Vessel | ||
VESSELS, NET [Abstract] | ||||
Number of vessels | 22 | 20 | ||
Number of vessels the Company believed had future undiscounted cash flow less than carrying value | 1 | |||
Impairment loss on vessel | $0 | $0 | $12,030 | |
Schedule of Vessels [Line Items] | ||||
Carrying Value | 909,992 | 911,429 | ||
Accumulated Depreciation | 567,645 | 487,485 | ||
Depreciation Expense | 80,160 | 74,022 | ||
Acquisition of vessels | 73,904 | |||
Vessels [Member] | ||||
Schedule of Vessels [Line Items] | ||||
Carrying Value | 882,221 | 872,846 | ||
Accumulated Depreciation | 524,651 | 460,422 | ||
Depreciation Expense | 64,229 | 62,781 | ||
Acquisition of vessels | 73,604 | |||
Drydocking [Member] | ||||
Schedule of Vessels [Line Items] | ||||
Carrying Value | 27,771 | 38,583 | ||
Accumulated Depreciation | 42,994 | 27,063 | ||
Depreciation Expense | 15,931 | 11,241 | ||
Acquisition of vessels | $300 |
OTHER_NONCURRENT_ASSETS_Detail
OTHER NON-CURRENT ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
OTHER NON-CURRENT ASSETS [Abstract] | |||
Fixture, Furniture and Equipment | $1,099,000 | $1,129,000 | |
Warrants | 0 | 915,000 | |
Deferred Finance Costs | 2,232,000 | 3,460,000 | |
Long term deposit | 5,000,000 | 5,000,000 | |
Total | 8,331,000 | 10,504,000 | |
Revolving credit facility | 430,000,000 | ||
Credit facility costs | $0 | $0 | $6,139,000 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 10, 2013 | Jan. 10, 2013 | Jan. 02, 2013 | |
LIABILITIES [Abstract] | ||||||
Settlement loss | $0 | $5,000,000 | $0 | |||
Net Goodwill recognized | 18,979,000 | 18,979,000 | ||||
Acquisition related costs | 3,600,000 | |||||
Private equity placement issued amount | 113,433,000 | 172,611,000 | 75,582,000 | |||
Private equity placement participation | 55,223,000 | 64,128,000 | ||||
Shares as dividend-in-kind (in shares) | 699,802 | |||||
Income (Loss) from Equity Method Investments | 1,700,000 | |||||
Equity Method Investment, Realized gain on classification. | 3,300,000 | |||||
Proceeds from Dividends Received | 2,100,000 | |||||
Dividend amount received | 252,000 | 0 | 0 | |||
Equity income | 1,665,000 | 40,000 | 0 | |||
Dividend received | 3,600,000 | |||||
Return of capital | 3,400,000 | |||||
Warrants received (in shares) | 833,333 | 833,333 | ||||
Warrants exercise price (n dollars per share) | $15 | $15 | ||||
Percentage of warrants vesting increments (in hundredths) | 20.00% | |||||
Percentages of increase in volume weighted average price (in hundredths) | 10.00% | |||||
Minimum business days required for exercise level of VWAP | 10 days | |||||
VWAP minimum trading volume of exercise levels | 2,000,000 | 2,000,000 | ||||
Warrants vested (in shares) | 333,333 | |||||
Warrants expiration date | 31-Dec-15 | |||||
Minimum [Member] | ||||||
LIABILITIES [Abstract] | ||||||
Percentage of common shares increase (in hundredths) | 25.00% | 25.00% | ||||
Maximum [Member] | ||||||
LIABILITIES [Abstract] | ||||||
Percentage of common shares increase (in hundredths) | 65.00% | 65.00% | ||||
Scandic [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Effective Date of Acquisition | 10-Jan-13 | |||||
Number of shares transferred in acquisition (in shares) | 1,910,112 | |||||
Share price of stock transferred (in dollars per share) | $9.50 | $9.50 | ||||
Lock-up period | 1 year | |||||
Manager's right to ownership of total outstanding shares percentage (in hundredths) | 2.00% | |||||
ASSETS [Abstract] | ||||||
Cash and cash equivalents | 400,000 | 400,000 | ||||
Assets held for sale | 6,600,000 | 6,600,000 | ||||
Other current assets | 2,400,000 | 2,400,000 | ||||
Furniture, fixture and equipment | 1,000,000 | 1,000,000 | ||||
Other non-current assets | 200,000 | 200,000 | ||||
Total assets acquired | 10,600,000 | 10,600,000 | ||||
LIABILITIES [Abstract] | ||||||
Accounts payable | 200,000 | 200,000 | ||||
Tax payable | 200,000 | 200,000 | ||||
Other current liabilities | 900,000 | 900,000 | ||||
Total liabilities assumed | 1,300,000 | 1,300,000 | ||||
Net assets acquired | 9,300,000 | 9,300,000 | ||||
Cash consideration | 8,000,000 | |||||
Common shares issued | 18,100,000 | |||||
Payable to seller | 7,200,000 | |||||
Total consideration | 33,300,000 | |||||
Difference | 24,000,000 | 24,000,000 | ||||
Settlement loss | 5,000,000 | |||||
Net Goodwill recognized | 19,000,000 | 19,000,000 | ||||
Orion [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Effective Date of Acquisition | 2-Jan-13 | |||||
Percentage of entity acquired (in hundredths) | 50.00% | |||||
ASSETS [Abstract] | ||||||
Total assets acquired | 1,800,000 | |||||
LIABILITIES [Abstract] | ||||||
Total liabilities assumed | 1,300,000 | |||||
Cash consideration | 300,000 | |||||
Nordic American Offshore Limited [Member] | ||||||
LIABILITIES [Abstract] | ||||||
Ownership percentage (in hundredths) | 17.00% | |||||
Dividend amount received | 3,600,000 | |||||
Private equity placement participation (in hundredths) | 17.00% | |||||
Equity income | 1,700,000 | |||||
Nordic American Offshore Limited [Member] | Private Placement [Member] | ||||||
LIABILITIES [Abstract] | ||||||
Private equity placement issued amount | 250,000,000 | |||||
Private equity placement participation | $65,000,000 | |||||
Ownership percentage (in hundredths) | 26.00% | |||||
Private equity placement participation (in hundredths) | 26.00% |
SHAREBASED_COMPENSATION_PLAN_D
SHARE-BASED COMPENSATION PLAN (Details) (USD $) | 2 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Aug. 05, 2011 | Feb. 23, 2011 |
Person | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | ||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Non-vested at beginning of period (in shares) | 226,000 | |||||||
Fully vested shares (in shares) | 193,000 | |||||||
Equity Incentive Plan 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares authorized (in shares) | 400,000 | |||||||
Individuals in management and Board members participating in incentive plan | 23 | |||||||
Percentage of allocated shares to outstanding shares (in hundredths) | 0.80% | |||||||
Share-based compensation arrangement shares authorized and issued, first range (in shares) | 326,000 | |||||||
Share-based compensation arrangement shares authorized and issued, second range (in shares) | 74,000 | |||||||
Total compensation cost for the period | $1.10 | $2.10 | $1.30 | |||||
Vesting requirement lifted for restricted shares | 174,000 | |||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Granted during the year (in shares) | 400,000 | |||||||
Equity Incentive Plan 2011 [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement shares cliff vesting period | 4 years | |||||||
Equity Incentive Plan 2011 [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement shares cliff vesting period | 5 years | |||||||
Scandic American Shipping Ltd. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares transferred in acquisition (in shares) | 1,910,112 | |||||||
Acquisition of shares in percentage (in hundredths) | 100.00% | |||||||
Employees [Member] | ||||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Non-vested at beginning of period (in shares) | 163,000 | 163,000 | 163,000 | |||||
Granted during the year (in shares) | 0 | 0 | ||||||
Vested during the year (in shares) | 0 | 0 | ||||||
Forfeited during the year (in shares) | -10,000 | 0 | ||||||
Non-vested at end of period (in shares) | 153,000 | 163,000 | ||||||
Weighted-average grant-date fair value [Abstract] | ||||||||
Non-vested at beginning of period (in dollars per share) | $23.88 | $23.88 | $23.88 | |||||
Granted during the year (in dollars per share) | $0 | $0 | ||||||
Vested during the year (in dollars per share) | $0 | $0 | ||||||
Forfeited during the year (in dollars per share) | $0 | $0 | ||||||
Non-vested at end of period (in dollars per share) | $23.88 | $23.88 | ||||||
Non-Employees [Member] | ||||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Non-vested at beginning of period (in shares) | 40,000 | 228,500 | 228,500 | |||||
Granted during the year (in shares) | 33,000 | 0 | ||||||
Vested during the year (in shares) | 0 | -174,000 | ||||||
Forfeited during the year (in shares) | 0 | -14,500 | ||||||
Non-vested at end of period (in shares) | 73,000 | 40,000 | ||||||
Weighted-average grant-date fair value [Abstract] | ||||||||
Non-vested at beginning of period (in dollars per share) | $24.84 | $22.06 | $22.06 | |||||
Granted during the year (in dollars per share) | $9.84 | $0 | ||||||
Vested during the year (in dollars per share) | $0 | $0 | ||||||
Forfeited during the year (in dollars per share) | $0 | $0 | ||||||
Non-vested at end of period (in dollars per share) | $18.06 | $24.84 | ||||||
Employees and Non Employees [Member] | Equity Incentive Plan 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares held in treasury or repurchase of restricted common shares added to treasury (in shares) | 10,000 | 14,500 | 8,500 | |||||
Restricted shares remaining in plan | 203,000 | |||||||
Restricted Stock Awards [Member] | Scandic American Shipping Ltd. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Manager's right to ownership of company's total outstanding shares (in hundredths) | 2.00% | |||||||
Common Stock, par value (in dollars per share) | $0.01 | |||||||
Lock up period of new shares issued to the Manager | 1 year | |||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Granted during the year (in shares) | 112,245 | |||||||
Restricted Stock Awards [Member] | Scandic American Shipping Ltd. [Member] | Equity Incentive Plan 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Fair value of shares issued to manager (in dollars per share) | $13.73 | |||||||
Total compensation cost for the period | 1.1 | |||||||
Restricted Stock Awards [Member] | Employees [Member] | Equity Incentive Plan 2011 [Member] | ||||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Granted during the year (in shares) | 33,000 | |||||||
Restricted Stock Awards [Member] | Employees and Non Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares held in treasury or repurchase of restricted common shares added to treasury (in shares) | 33,000 | |||||||
Restricted Stock Awards [Member] | Employees and Non Employees [Member] | Equity Incentive Plan 2011 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Fair value of shares issued to manager (in dollars per share) | $18.05 | $23.88 | ||||||
Common shares repurchased at fair value (in shares) | 10,000 | |||||||
Unrecognized compensation cost related to unvested restricted stock | 0.4 | |||||||
Weighted average period to recognize the unrecognized compensation cost | 0 years 7 months 6 days | |||||||
Fair value of shares vested | $1.70 | |||||||
Restricted shares -Employees and Non-Employees [Roll Forward] | ||||||||
Granted during the year (in shares) | 74,000 | 326,000 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $430,000,000 | ||
Credit Facility Costs | 0 | 0 | 6,139,000 |
2012 Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 430,000,000 | ||
Maturity date | 31-Oct-17 | ||
Credit Facility Costs | 6,139,000 | ||
Commitment fees and interest paid | 11,700,000 | 9,700,000 | 2,900,000 |
Undrawn amount | 180,000,000 | 180,000,000 | |
2005 Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 300,000,000 | ||
2005 Revised Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Repayment obligation | $0 | ||
Term of Debt Instrument | 5 years |
INTEREST_EXPENSE_Details
INTEREST EXPENSE (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
INTEREST EXPENSE [Abstract] | |||
Credit facility costs | $0 | $0 | $6,139,000 |
Amortization of deferred financing costs | 1,228,000 | 1,228,000 | 1,365,000 |
Deferred financing costs | $3,300,000 | $4,600,000 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED LIABILITIES [Abstract] | ||
Accrued Interest | $1,452 | $1,600 |
Accrued Expenses | 4,481 | 4,967 |
Deferred revenue | 2,654 | 0 |
Total as of December 31 | $8,587 | $6,567 |
EARNINGS_LOSS_PER_SHARE_Detail
EARNINGS (LOSS) PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
EARNINGS (LOSS) PER SHARE [Abstract] | |||
Anti-dilutive shares outstanding (in shares) | 400,000 | 400,000 | |
Numerator [Abstract] | |||
Net Loss | ($12,808) | ($105,417) | ($73,192) |
Denominator [Abstract] | |||
Basic - Weighted Average Common Shares Outstanding (in shares) | 85,401,179 | 64,101,923 | 52,547,623 |
Dilutive - Weighted Average Common Shares Outstanding (in shares) | 85,401,179 | 64,101,923 | 52,547,623 |
Loss per Common Share: [Abstract] | |||
Basic (in dollars per share) | ($0.15) | ($1.64) | ($1.39) |
Diluted (in dollars per share) | ($0.15) | ($1.64) | ($1.39) |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Jun. 17, 2014 | Apr. 30, 2014 | Nov. 30, 2013 | Apr. 30, 2013 | Jan. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | |
Authorized Shares [Roll forward] | |||||||||
Balance at beginning of period (in shares) | 90,000,000 | 90,000,000 | 90,000,000 | 90,000,000 | |||||
Increase in Authorized Shares (in shares) | 90,000,000 | ||||||||
Balance at end of period (in shares) | 180,000,000 | 90,000,000 | 90,000,000 | ||||||
Issued and Outstanding Shares [Roll forward] | |||||||||
Balance at beginning of period, issued (in shares) | 47,303,394 | 75,382,001 | 52,915,639 | 47,303,394 | |||||
Balance at beginning of period, outstanding (in shares) | 47,303,394 | 75,382,001 | 52,915,639 | 47,303,394 | |||||
Common Shares Issued in Follow-on-Offering (in shares) | 13,800,000 | 9,343,750 | 11,212,500 | 5,500,000 | 13,800,000 | 20,556,250 | 5,500,000 | ||
Balance at end of period, issued (in shares) | 89,182,001 | 75,382,001 | 52,915,639 | ||||||
Balance at end of period, outstanding (in shares) | 89,182,001 | 75,382,001 | 52,915,639 | ||||||
Common Stock [Roll forward] | |||||||||
Balance at beginning of period | $473,000 | $754,000 | $529,000 | $473,000 | |||||
Common Shares Issued in Follow-on Offering | 138,000 | 206,000 | 55,000 | ||||||
Compensation - Restricted Shares | 997,000 | 2,093,000 | 1,258,000 | ||||||
Balance at end of period | 892,000 | 754,000 | 529,000 | ||||||
Common Stock [Abstract] | |||||||||
Common shares issued in public offering (in shares) | 13,800,000 | 9,343,750 | 11,212,500 | 5,500,000 | 13,800,000 | 20,556,250 | 5,500,000 | ||
Net proceeds from underwritten public offering of common shares | 113,400,000 | 70,900,000 | 102,200,000 | 75,600,000 | 113,433,000 | 172,611,000 | 75,582,000 | ||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 | |||||||
Additional Paid in Capital [Abstract] | |||||||||
Share Premium Fund | 77,400,000 | 172,400,000 | |||||||
Reduction of Share Premium | 208,200,000 | ||||||||
Contributed Surplus Account [Abstract] | |||||||||
Net Income (Loss) | 12,808,000 | 105,417,000 | 73,192,000 | ||||||
Shareholders' Rights Plan [Abstract] | |||||||||
Preferred stock purchase right | one preferred stock purchase right to purchase one one-thousandth of a share of our Series A Participating Preferred Stock for each outstanding share of our common stock, par value $0.01 per share | ||||||||
Stockholders rights, exercise price (in dollars per share) | $115 | ||||||||
Percentage of common stock ownership (in hundredths) | 15.00% | ||||||||
Restricted Stock Awards [Member] | Scandic American Shipping Ltd. [Member] | |||||||||
Common Stock [Abstract] | |||||||||
Common Stock, par value (in dollars per share) | $0.01 | ||||||||
Restricted shares issued and outstanding (in shares) | 2,600,663 | 2,600,663 | 690,551 | ||||||
Restricted Stock Awards [Member] | Employees and Non-Employees [Member] | |||||||||
Common Stock [Abstract] | |||||||||
Shares held in treasury (in shares) | 33,000 | ||||||||
Restricted Stock Awards [Member] | Employees and Non-Employees [Member] | Stock Incentive Plan 2011 [Member] | |||||||||
Common Stock [Abstract] | |||||||||
Restricted shares issued and outstanding (in shares) | 73,000 | 40,000 | 217,500 | ||||||
Common Stock [Member] | |||||||||
Issued and Outstanding Shares [Roll forward] | |||||||||
Common Shares Issued in Follow-on-Offering (in shares) | 13,800,000 | 20,556,250 | 5,500,000 | ||||||
Compensation - Restricted Shares (in shares) | 1,910,112 | 112,245 | |||||||
Common Stock [Abstract] | |||||||||
Common shares issued in public offering (in shares) | 13,800,000 | 20,556,250 | 5,500,000 | ||||||
Shares held in treasury (in shares) | 10,000 | 14,500 | 8,500 | ||||||
Contributed Surplus Account [Abstract] | |||||||||
Net Income (Loss) | 0 | 0 | 0 | ||||||
Restricted Stock [Member] | |||||||||
Common Stock [Roll forward] | |||||||||
Compensation - Restricted Shares | $19,000 | $1,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claim | Claim | |||
Subsequent Event [Line Items] | ||||
Number of claims filed | 0 | 0 | 0 | |
Gulf Navigation Holding PSJ [Member] | ||||
Subsequent Event [Line Items] | ||||
Period of charter | 6 years | |||
Damages awarded | $10.20 |
FINANCIAL_INSTRUMENTS_AND_OTHE2
FINANCIAL INSTRUMENTS AND OTHER FAIR VALUE DISCLOSURES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment charge | $12,000,000 | ||
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Credit Facility | -250,000,000 | -250,000,000 | |
Long-lived asset held for use | 29,400,000 | ||
Fair Value [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 100,736,000 | 65,675,000 | |
Investment in NAO | 55,223,000 | 0 | |
Fair Value [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Warrants in NAO | 0 | 915 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Credit Facility | -250,000,000 | -250,000,000 | |
Long-lived asset held for use | 41,400,000 | ||
Carrying Value [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 100,736,000 | 65,675,000 | |
Investment in NAO | 55,223,000 | 0 | |
Carrying Value [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Warrants in NAO | $0 | $915 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], Dividend Declared [Member], USD $) | 0 Months Ended |
Jan. 09, 2015 | |
Subsequent Event [Member] | Dividend Declared [Member] | |
Subsequent Event [Line Items] | |
Dividend declared (in dollars per share) | $0.14 |
Date dividend declared | 9-Jan-15 |
Date dividend paid | 9-Feb-15 |